UCSB  LIBRARY. 


HISTORY   OF    ECONOMICS 


H  ISTORY 

OF 

ECONOMICS 

or 

Economics  as  a  Factor  in  the 
Making  of  History 

By 

Rev.  J.  A.  DEWE,  A.M. 

Late  Professor  of  History  in  the  College  of  St.  Thomas, 

St.  Paul,  now  Professor  of  History  at  the 

University  of  Ottawa 


NEW  YORK,      CINCINNATI,      CHICAGO 
NZIGER    BROTHERS 

PRINTERS    TO    THE    HOLY    APOSTOLIC    SEE 
1908 


YUbil  Obetat. 


REMY  LAFORT, 

Censor  Librorum, 


•ffmprtmatut. 


^.JOHN   M.    FARLEY, 

Archbishop  of  New  York, 


Niw  YORK,  NOVEMBER  30,  1907. 


COPYRIGHT,   1908,  BY  BENZIGER  BROTHERS. 


INTRODUCTION 

HISTORY  is  no  longer  a  study  of  isolated  events,  but 
rather  of  the  workings  of  unseen  laws  and  influences. 
As  the  different  phenomena  of  chemistry  and  physics 
receive  their  orderly  arrangement  and  their  power  to 
interest  only  from  their  association  with  certain  laws,  so, 
in  history,  the  facts  that  make  up  the  narrative  are  but 
the  material  or  medium  through  which  are  conveyed  the 
workings  of  laws  both  universal  and  ever  constant. 

The  study  of  history  has  thus  lost  much  of  the  dry- 
ness,  and,  perhaps,  also  some  of  the  disregard  in  which 
it  used  to  be  held.  No  longer  is  it  a  mere  committal  to 
memory  of  battles  and  sieges,  of  alternating  wars  and 
treaties,  of  the  rise  and  succession  of  dynasties.  It  is 
now  a  scientific  research  into  the  influences  that  bring 
about  all  these  different  results.  The  action  of  the 
motor  power  of  certain  laws  is  now  seen  in  all  the  pages 
of  history,  and  every  event  that  takes  place  can  be 
attributed  to  the  action  of  some  law. 

The  study  of  history,  therefore,  has  been  raised  to 
the  dignity  of  a  science,  a  science  that  specially  interests 
the  mind  of  the  seeker  after  true  wisdom.  None  other, 
perhaps,  deals  so  effectively  with  the  mainsprings  of 
human  conduct.  It  reveals  the  future  by  means  of  the 
past,  and  shows  to  mankind  what  particular  environment 
it  must  seek  after  in  order  to  achieve  the  greatest  happi- 
ness of  the  greatest  number.  Moreover,  to  the  student 
who  has  emerged  from  the  embryo  condition  of  the 
small  boy,  this  scientific  study  of  history  should  hold 
out  most  fascinating  attractions,  since  it  presents  the 


6  Introduction 

key  with  which  to  unlock  some  of  the  most  actual,  press- 
ing problems  of  our  present  civilization. 

The  influences  or  laws  that  shape  the  events  of  his- 
tory are  many  and  various.  They  may,  however,  all  be 
summed  up  under  three  great  categories,  namely :  Physi- 
cal Surroundings,  Religion,  and  Economics. 

From  time  immemorial,  the  physical  surroundings  of 
a  nation  have  vitally  determined  its  history.  Climate, 
whether  hot  or  cold,  the  configuration  of  the  country, 
whether  it  be  an  island  or  a  part  of  a  continent,  the 
resources  of  the  soil,  whether  agricultural  or  mineral, 
have  their  share  in  determining  the  political  place  and 
habitual  occupations  of  a  nation.  Athens,  Carthage, 
Venice,  England,  all  became  great  maritime  and  com- 
mercial powers  on  account  of  their  proximity  to  the  sea. 
Small  frontier  nations,  on  the  other  hand,  like  Phenicia 
and  Prussia,  have  been  forced  into  a  condition  of  hot-bed 
artificial  strength,  owing  to  the  necessity  of  constantly 
providing  against  danger  from  their  more  powerful 
neighbors.  To  an  almost  equal  extent  have  the  produc- 
tions of  the  soil  been  instrumental  in  determining  the 
whole  character  and  history  of  a  nation.  The  abun- 
dance of  precious  metals,  the  bountiful  supply  of  iron,  or 
the  exuberant  fertility  of  the  soil,  all  determine  the  aver- 
age occupation  of  the  citizen  and  the  wealth  of  the 
nation  and  the  power  of  the  State. 

Religion  is  another  very  important  influence  in  the 
shaping  of  history.  Man's  conduct  is  swayed,  to  a  great 
extent,  by  his  religious  belief.  If  we  leave  aside  the 
influence  of  religion,  the  history  of  the  Eastern  peoples 
is  an  insoluble  enigma.  If,  in  Greek  history,  we  leave 
religion  out  of  account,  the  old  Greek  oracles  with  their 
inspiring  utterances,  obeyed  alike  by  all  classes  of 
society,  would  no  longer  appear  on  the  pages  of  history, 


Introduction  7 

and  the  Greek  religious  assemblies,  such  as  those  of  the 
Amphictyonic  Councils,  which  at  one  time  seemed  likely 
to  bring  about  the  unity  of  Greece,  would  likewise  van- 
ish. Indeed,  Greek  history,  without  the  religious  ele- 
ment, would  be  cut  down  by  at  least  one  half,  and  even 
the  remaining  half  would  be  void  of  meaning. 

The  same  might  be  said  of  Roman  history.  There 
every  important  transaction  of  the  State  is  blended  with 
some  religious  act.  The  taking  of  the  auspices,  the  con- 
sultation of  the  augurs,  the  offering  up  of  sacrifices, 
accompanied  all  the  acts  of  Roman  life,  whether  public 
or  private.  Even  down  to  the  time  of  Caesar,  an  un- 
lucky omen  might  thwart  the  action  of  the  most  power- 
ful magistrate. 

If  we  turn  over  the  pages  of  modern  history,  bright 
with  the  rays  of  dominant  Christianity,  we  find  religion 
still  a  most  important  factor  in  the  shaping  of  history. 
The  Mohammedan  invasions,  the  Crusades,  the  wars 
against  the  Albigenses,  the  Thirty  Years'  War,  the  War 
in  the  Netherlands,  were  all  brought  into  being  by 
the  religious  element.  Then,  again,  was  it  not  the 
struggle  between  empire  and  Papacy  that  practi- 
cally dominated  the  theater  of  European  politics  for 
three  centuries?  We  might  mention,  as  well,  all  the 
different  institutions  molding  society  that  have  been 
started  by  the  spirit  of  religion:  the  monasteries  and 
convents  of  the  Middle  Ages,  the  universities,  the 
guilds,  and  all  the  different  ordinances  that  have  regu- 
lated man's  public  and  private  life. 

Finally,  we  come  to  the  third  category  of  formative 
causes,  namely,  economics.  This  element,  as  we  shall 
see,  is  also  of  the  greatest  importance,  and  this  not  only 
on  account  of  its  own  intrinsic  activity,  but  because  it  is 
so  intimately  bound  up  with  the  other  two  important 


8  Introduction 

formative  influences  in  history,  namely,  physical  sur- 
roundings and  religion. 

By  economics  is  meant  the  science  of  wealth,  and 
this,  again,  means  the  knowledge  of  the  laws  that  gov- 
ern the  production  of  wealth,  and  its  distribution.  We 
might,  perhaps,  express  this  definition  in  simpler  terms 
by  saying  that  economics  is  the  science  of  how  a  man 
makes  his  wealth,  and  how  he  gets  it. 

It  is  evident,  then,  that  economics  must  have  an 
almost  unbounded  influence  on  human  conduct,  both 
public  and  private.  For  the  great  majority  spend  the 
greater  part  of  their  time  either  in  producing  or  dis- 
tributing wealth,  and,  from  the  point  of  view  of  exten- 
sion, the  time  that  an  ordinary  man  has  to  employ  in 
earning  his  daily  bread  is  greater  than  that  which  he  can 
possibly  expend  in  explicit  acts  of  religion. 

This  all-pervading  activity  of  economics  is  still  more 
apparent  in  the  State  or  commonwealth.  In  the  whole 
course  of  ancient  and  modern  history,  there  is  scarcely 
any  single  important  political  event  that  has  not  been 
caused,  either  directly  or  indirectly,  by  some  economic 
influence.  Religion  and  physical  causes  may  also  have 
been  present,  but  the  economic  factor  seems  to  have  been 
the  most  constant  and  the  most  pervasive. 

Although  we  shall  be  anticipating  what  will  come 
afterwards,  a  few  examples  taken  from  typical  nations 
will  serve  to  illustrate  this  statement. 

In  ancient  history,  the  great  revolution  that  was  fol- 
lowed by  the  rise  of  the  people  to  political  power  was 
occasioned  directly  by  economic  causes.  In  Greece,  it 
was  the  misery  of  the  debtor,  combined  with  the  de- 
pressed condition  of  trade,  that  occasioned  the  reforms 
of  Solon — reforms  which,  in  their  turn,  led  up  to  the 
completely  democratic  constitution  of  Clisthenes.  In- 


Introduction  9 

deed,  one  remarkable  feature  of  the  genius  of  Solon  is 
the  way  in  which  he  saw  that  his  legislative  reforms,  in 
order  to  be  effectual,  must  also  be  accompanied  by  eco- 
nomic reforms.  He  saw  that  any  concession  of  political 
power  would  be  useless  if  the  people  were  still  left  to 
groan  in  misery,  and  to  starve  by  inches,  and  hence  the 
great  part  of  his  reforms  not  only  relieved  the  misery  of 
the  debtor,  but  tended  generally  to  further  industries  of 
all  kinds  and  the  expansion  of  trade. 

In  Rome,  we  find  exactly  the  same  parallel.  For 
years  there  was  serious  friction  between  the  Patricians 
and  the  Plebeians.  And  the  main  causes  of  this  friction 
were  likewise  economic.  The  people  were  cut  off  from 
the  land,  while  the  laws  of  debt  were  unjustly  severe. 
Indeed,  the  great  socialist  leaders  in  Republican  times, 
according  to  Mommsen,  all  took  their  stand  on  some 
economic  question.  Cassius  endeavored  to  deal  with  the 
agrarian  question,  Manlius  with  the  law  of  debt,  while 
Maelius  tried  to  introduce  the  custom  of  distributing, 
gratis,  cereal  foods  among  the  poorer  classes. 

In  modern  times,  the  relation  between  politics  and 
economics  is  still  closer.  Hostilities  between  nation  and 
nation,  the  formation  of  alliances  and  treaties,  the  good 
or  bad  understanding  between  rulers  and  their  subjects, 
can  nearly  all  be  traced  to  economic  causes. 

We  might  quote,  as  an  illustration,  the  Hundred 
Years'  War  between  England  and  France.  During  the 
whole  of  that  war,  England  had  on  her  side  the  faithful 
assistance  of  Flanders,  and  of  the  two  duchies  of  Gas- 
cony  and  Guienne.  The  reason  of  this  alliance  was  the 
constant  interdependence  of  England  and  these  coun- 
tries, which  was  mainly  economic.  England  was,  during 
the  Middle  Ages,  essentially  an  agricultural  country, 
fleece  being  her  most  important  product.  Flanders,  on 


IO  Introduction 

the  other  hand,  had  the  art  of  manufacturing  the  fleece 
into  wool.  Thus,  the  two  countries  were  mutually  de- 
pendent, one  upon  the  other.  Neither  could  have 
repudiated  the  alliance  without  great  inconvenience. 

Gascony  and  Guienne,  also,  carried  on  extensive  trade 
transactions  with  England,  but  in  a  different  way.  Eng- 
land was  dependent  mainly  on  these  two  duchies  for  her 
imported  wines.  Then,  again,  although  England  had 
salt  mines,  she  had  not  discovered  the  art  of  working 
them,  so  that,  for  salt,  she  also  had  to  depend  upon 
these  two  duchies,  and  thus,  all  during  the  vicissitudes 
of  the  Hundred  Years'  War,  there  was  a  natural  and 
effective  tie  between  these  countries  and  England. 

Another  example  which  illustrates  in  a  different  way 
the  importance  of  economics  as  an  influence  in  the 
shaping  of  history,  we  find  in  the  rise  and  fall  of  the 
political  power  of  Venice.  It  was  commerce  that  first 
made  Venice  so  powerful  in  the  arena  of  European 
politics.  The  sea  trade  routes  from  the  East  to  the 
West  converged  through  Venice,  which  thus  became  the 
clearing-house  of  the  world.  Merchants  from  all  parts 
thronged  the  Rialto,  while  through  her  was  exchanged 
the  wealth  of  nations.  Venice  thus  became  also  the  cen- 
ter of  distribution.  In  the  wake  of  this  material  pros- 
perity soon  appeared  a  power  that,  in  European  politics, 
was  colossal.  Her  ambassadors  were  found  in  all  the 
capitals  of  Europe,  while  she  rapidly  became  the  focus 
of  the  manifold  activity  of  European  politics.  When, 
however,  the  old  trade  routes  were  done  away  with,  the 
cause  of  her  power  was  obviously  undermined.  Her 
political  influence  began  to  wane  with  the  decline  of  her 
trade,  and  she  quickly  became  reduced  to  the  condition 
of  an  insignificant  power. 

In  more  modern  times,  it  would  be  no  exaggeration  to 


Introduction  II 

say  that  the  great  majority  of  wars  and  revolutions  have 
been  brought  about  by  economic  causes.  The  War  of 
Louis  XIV,  the  Seven  Years'  War,  the  War  of  the 
American  Revolution,  were  mainly  struggles  for  the  pos- 
session of  wider  markets.  The  overthrow  of  the  mon- 
archical dynasty  in  France  was  occasioned  mainly  by 
economic  discontent  aroused  by  heavy  taxes  and  enact- 
ments, while,  in  America,  the  great  war  between  North 
and  South  was  brought  about  by  the  different  economic 
conditions  prevailing  in  the  two  sections — conditions 
which  made  slavery  favorable  to  the  Southerner,  and 
unfavorable  to  the  Northerner. 

All  these  are  but  casual  examples,  selected  at  wide 
intervals  of  time  and  place,  which  illustrate  the  impor- 
tant connection  between  economics  and  history.  This 
illustration,  however,  is  only  partial,  but  in  the  course  of 
this  work  we  shall  find  constant  proof  that  it  is  impos- 
sible to  understand  clearly  the  sequence  of  political 
events  without  considerable  knowledge  of  the  economic 
factor. 

Even  the  intervention  of  the  religious  and  physical 
elements  is  blended  with  economics.  As  a  great  writer 
has  pointed  out,  all  great  religious  movements  are  con- 
nected with  the  material  well-being  of  the  people.  And 
with  regard  to  the  physical  element,  the  advantages  or 
disadvantages  of  soil  and  climate  are  closely  dependent 
for  their  importance  upon  the  economic  activities  of  the 
people  themselves. 

The  study,  therefore,  of  the  economic  interpretation 
of  history  is  all-important  for  a  right  understanding  of 
history.  Historical  events  are  grouped  together  by 
such  close  ties  of  natural  connection  as  to  aid  the  memory 
considerably.  Most  distant  periods  are  found  to  present 
most  interesting  parallels,  and  this  gives  cohesiveness  to 


1 2  Introduction 

the  structure  of  historical  knowledge,  while  the  scientific 
mind  also  receives  full  satisfaction  in  viewing  the  ulti- 
mate causes  of  the  historic  phenomena  that  are  so 
numerous  and  otherwise  so  perplexing. 

We  are  now  brought  to  the  final  justification  of  the 
economic  treatment  of  history.  Surely,  only  that  is 
really  worthy  of  the  name  of  knowledge  that  contributes 
to  the  welfare  of  the  individual  man  and  of  society. 
While  the  knowledge  of  a  past  that  has  no  bearing  on 
the  future  is  a  useless  encumbrance  upon  the  mind,  the 
economic  study  of  history  is  full  of  salutary  lessons  for 
the  present  and  guidance  for  the  future. 

How  many  arduous  questions  are  facing  the  states- 
man of  to-day!  Questions  essentially  economical,  and 
upon  the  solution  of  which  depends  the  fate  of  statesmen 
and  the  rise  or  fall  of  nations.  Such  questions  as  Pro- 
tection, Free  Trade,  the  power  which  the  government 
has  to  interfere  with  corporations  and  trade-unions,  and 
the  expediency  of  so  doing,  the  problem  of  providing  for 
the  poor  and  the  unemployed,  the  problem  of  peacefully 
reconciling  with  one  another  the  colonial  aspirations  of 
the  countries  of  Europe,  and  also  of  the  United  States ; 
all  these  are  vital  problems,  and  to  many  seem  new. 
But,  as  we  shall  see,  they  are  all,  or  most  of  them  are, 
old  problems  dressed  up  in  a  different  form.  They  have 
appeared  over  and  over  again  in  the  pages  of  history, 
ancient  and  modern,  and  with  them  has  also  often  ap- 
peared the  key  to  their  solution. 

To  the  student  of  history,  to  the  statesman,  to  the 
citizen  desirous  of  contributing  his  share  to  the  well- 
being  of  the  State,  to  the  intelligent  man,  who  wishes  to 
discourse  with  authority  on  modern  problems,  the  eco- 
nomic study  of  history  will  prove  as  advantageous  as  it 
is  interesting. 


Introduction  13 

Nothing  now  remains  by  way  of  introduction  except 
to  indicate  briefly  the  main  divisions  of  the  subject. 

The  first  part  deals  with  the  economics  of  the  ancient 
period  of  history;  the  second  treats  of  the  economics  of 
the  medieval  period;  and  the  third  has  to  do  with  the 
economics  of  the  modern  period. 

During  the  preparation  of  this  work,  much  assistance 
and  unfailing  courtesy  have  been  tendered  me  by  the 
chiefs  of  different  libraries  in  foreign  countries,  in  the 
United  States,  and  in  Canada,  notably  the  libraries  of 
Harvard  and  Yale  Universities. 

Also,  I  wish  to  make  mention  of  my  indebtedness  to 
Mr.  Martin  O'Gara,  of  the  University  of  Ottawa,  for 
valuable  time  generously  given  in  the  reading  of  the 
proofs  and  especially  the  compilation  of  the  index. 

J.  A.  DEWE. 


CONTENTS 


INTRODUCTION 


PART    I 
GREEK   AND   ROMAN    PERIOD 

CHAPTER  I. — Economic  Conditions  in  Greece.    The  Production 

of  Wealth  in  Ancient  Greece.      Distribution  of  Wealth. 

State  Administration  of  Finances  .  .  .19 

CHAPTER  II. — Influence  of  the  Economic  Element  in  Molding 

Greek  History  .  .  .  .  •  35 

CHAPTER  III. — Economic  Condition  of  Ancient  Rome.  Roman 

Production  of  Wealth  ...  .  .52 

CHAPTER  IV. — Distribution  of  Roman  Wealth.  Financial 

Administration  of  the  Ancient  Roman  State  .  .  62 

CHAPTER  V. — Influence  of  Economics  on  Roman  History  .  75 
CHAPTER  VI. — The  Rise  of  the  Capitalists  and  the  Fall  of  the 

Gracchi          .  .  .  .  .  .87 

CHAPTER  VII. — Conspiracy  of  Catiline.  Ascendency  of  Julius 

Cassar,  and  the  Downfall  of  the  Republic  .  .       97 


PART   II 

MEDIEVAL   PERIOD 
INTRODUCTION       .  .  .  .  .  .113 

CHAPTER  I. — The  Feudal  System    .  .  .  .118 

CHAPTER  II. — The  Towns  .  .  .  .128 

CHAPTER  III. — The  Guilds  and  the  Crafts    .  .  .141 

CHAPTER  IV. — Commerce  and  Industry  of  the  Middle  Ages. 

The  Distribution  of  Wealth      .  .  .  1 50 

CHAPTER  V. — Influence  of  the  Economic  Element  on  Medieval 

History  ......      165 

CHAPTER  VI. — Influence    of  the    Economic    Element    in  the 

Contest  between  the  Empire  and  the  Papacy        .  .182 

CHAPTER  VII. — Influence  of  the  Economic  Element  in  Raising 

the  Middle  Class  to  the  Possession  of  Political  Power  1 90 


1 6  Contents 

PART   III 
MODERN   PERIOD 

PAGI 

INTRODUCTION  .  . '  '  .  .  .  .211 

CHAPTER  I. — Economic  Theories  During  the  Modern  Period 

of  History      .  .  .  .  .  .213 

CHAPTER  II. — Geographical  Discoveries  .  .  .  223 

CHAPTER  III. — Production  of  Wealth  .  .  .231 

CHAPTER  IV. — Distribution  of  Wealth  .  .  .  246 

CHAPTER  V. — Government  Administration  of  Finances  .  262 

CHAPTER  VI. — Influence  of  Economics  on  Wars  and  Treaties  281 
CHAPTER  VII. — The  Economic  Element  in  National  Treaties  296 
CHAPTER  VIII. — Influence  of  the  Economic  Element  on  the 

French  Revolution  .  .  .  .  .301 

CHAPTER  IX. — A  General  Survey  of  the  Connection  between 

the  Economic  Element  and  Recent  Political  Events  .  317 

Index  .  .  ."  s  . '  '  .  .  •  325 


PART  I 
GREEK    AND    ROMAN    PERIOD 


HISTORY    OF    ECONOMICS 

CHAPTER  I 
ECONOMIC   CONDITIONS  IN   GREECE 

THE  Greeks  had  no  conception  of  political  economy 
as  a  science.  They  did,  however,  busy  themselves  with 
certain  facts  and  data  that  constitute  the  material  of 
this  science,  namely,  with  the  production  and  distribu- 
tion of  wealth.  They  raised  crops,  breeded  cattle,  ex- 
tracted the  precious  metals,  traded  with  one  another  and 
with  foreign  nations;  but  they  did  all  this  without  hav- 
ing any  established  formulae  or  principles,  and  without 
any  sight  of  those  tendencies  that  constitute  the  laws  of 
political  economy. 

One  of  the  reasons  of  this  would  arise  from  the 
nature  of  the  subject  itself.  The  phenomena  that  make 
up  the  material  of  political  economy  seem  vague  and 
indeterminate.  Only  after  much  patient  reflection  does 
it  become  apparent  that  what  seemed  to  be  so  many 
heaps  of  facts  are  really  produced  and  regulated  by 
constant  and  undeviating  influences.  The  Greek  mind, 
therefore,  especially  in  its  infancy,  would  naturally 
shrink  from  striving  to  reduce  to  the  condition  of  a 
science  such  indefinite  and  apparently  inappropriate 
material. 

Moreover,  even  if  the  material  of  political  economy 
had  seemed  all  that  could  be  desired,  the  Greek  mind 
itself  had  not  received  the  necessary  previous  training. 


2O  Greek  and  Roman  Period 

It  was  still  in  an  infantile  condition.  It  was  ruled 
chiefly  by  instinct  and  imagination.  The  habit  of  care- 
ful observation  and  of  the  use  of  deduction  and  in- 
duction, so  necessary  for  constructing  a  science,  was  at 
first  wanting.  It  is  not  surprising,  therefore,  that,  owing 
to  the  apparent  want  of  adequate  material,  and  the  de- 
ficiency of  any  previous  scientific  training,  the  Greek 
mind  should  have  failed  to  construct  a  science  of 
political  economy. 

And  yet  the  ancient  Greeks  had  some  theories  regard- 
ing the  production  and  distribution  of  wealth.  These 
theories,  it  is  true,  were  not  drawn  up  in  scientific  form, 
but  they  constitute  the  germ  of  the  science  of  political 
economy,  and  they  foreshadow  some  of  the  latest  politi- 
cal economic  theories. 

The  treatise  written  by  Xenophon  on  "Wealth" 
clearly  shows  that,  even  in  his  time,  there  had  sprung 
into  existence  a  considerable  number  of  ideas  regarding 
the  production  and  distribution  of  wealth — and  these 
ideas  had  been  slowly  developing  from  the  earliest  times. 
His  ideas  regarding  the  nature  of  agriculture,  the  im- 
portance of  manufactures  and  trade,  could  have  been 
discerned  already  in  the  legislation  of  Solon  as  far  back 
as  594  B.C. 

Both  Plato  and  Aristotle  held  opinions  on  economic 
subjects,  though  these  opinions  are  speculative  and 
academic,  and  chiefly  regard  the  ethical  side  of  political 
economy.  Thus,  they  extol  the  value  of  labor  in  the 
ideal  city,  a  city  whose  inhabitants  are  of  absolutely 
sound  moral  principle.  But  they  decry  its  use  in  the 
real  city,  on  account  of  the  sordid  love  of  wealth  that  so 
often  results. 

Not  only  Xenophon,  but  nearly  all  the  Greek  writers, 
agree  in  upholding  the  value  of  agriculture,  one  of  the 


Economic  Conditions  in  Greece  21 

reasons  alleged  being  that  agriculture,  unlike  other  pur- 
suits, takes  away  from  no  man,  and  they  all  agree  in 
maintaining  the  right  of  the  State  to  regulate  trade  and 
commerce.  These  important  theories,  it  is  interesting 
to  note,  were  very  predominant  during  the  last  two  cen- 
turies, and  when  first  originated  were  regarded  by  many 
as  new. 

There  was,  however,  one  remarkable  feature  in  which 
the  Greeks  differed  from  the  Teutonic  nations,  and 
rather  resembled  the  Romans,  and  that  was  the  views 
which  they  held  regarding  private  property.  Among 
the  early  Germans  there  was  no  such  thing  as  absolute 
private  property,  all  land  being  held  in  common,  and 
distributed  afresh  at  the  beginning  of  every  year.  Even 
in  modern  times,  some  trace  of  this  is  to  be  seen  in  the 
recognized  principle  that  land  may  be  appropriated  for 
the  public  service  of  the  State,  providing  that  compensa- 
tion be  given  to  the  owner,  while,  by  the  law  of  attain- 
der, a  criminal's  goods  may  still  be  confiscated.  But, 
amongst  the  early  Greeks,  the  idea  of  private  property 
was  deeply  rooted.  Even  though  the  fruits  of  the 
ground  were  not  considered  as  the  right  of  the  owner  or 
producer,  yet  the  ground  itself  was  held  to  be  abso- 
lutely the  property  of  the  owner.  Religion  itself  de- 
fended the  rights  of  private  ownership,  and  no  law  could 
be  passed  infringing  upon  such  rights. 

This  notion  of  the  inviolability  of  property  affected 
considerably  the  economic  life  of  Greece.  Since  the  land 
remained  to  the  family,  and  could  not  be  alienated  from 
the  family,  either  by  sale,  or  by  the  debt  of  the  owner, 
or  even  up  to  later  times  by  confiscation,  the  Greek  hus- 
bandman remained  more  or  less  fixed  to  the  soil.  There 
was  very  little  mobility  in  agricultural  labor.  At  the 
same  time,  one  can  easily  perceive  how  the  occupation 


22  Greek  and  Roman  Period 

of  agriculture,  on  account  of  its  ancient  traditions, 
and  its  intimate  connection  with  the  sacredness  of  private 
property,  was  always  held  in  the  highest  esteem. 

Such  were  the  main  general  ideas  held  by  the  Greeks 
regarding  economics.  These  ideas  were  of  the  simplest 
kind,  and  formed  the  basis  of  no  constructive  system. 
They  did,  however,  give  a  certain  kind  of  continuity  to 
the  economic  activity  of  the  Greeks,  and  explain  many 
things  in  their  economic  legislation  that  would  be  other- 
wise inexplicable. 

We  will  now  briefly  review  the  economic  condition 
of  ancient  Greece.  For  the  sake  of  clearness  and 
method,  the  production  of  wealth  will  be  considered 
first,  and  then  its  distribution. 


SECTION  I 
THE  PRODUCTION  OF  WEALTH  IN  ANCIENT  GREECE 

The  southern  position  of  Greece  would  lead  to  the 
natural  supposition  that  the  climate,  the  soil,  and  nat- 
ural products  are  sub-tropical,  yet  this  is  not  the 
case.  Only  in  Messenia  can  anything  like  sub-tropical 
vegetation  be  found.  The  climate,  generally,  is  mild, 
and  the  soil  is  far  from  being  luxuriant.  This  is  easily 
explained  by  the  configuration  of  the  land.  Mountains 
and  hills  everywhere  abound,  while  numerous  arms  of 
the  sea  penetrate  far  into  the  heart  of  the  country. 

Great  variety  is  to  be  found  in  the  different  parts  of 
Greece.  Thessaly  was  always  celebrated  for  its  rich 
pastures  and  the  breed  of  its  horses.  The  Boeotian 
mountains  were  noted  for  their  pleasant  groves  and  ver- 
dant slopes,  and  the  Boeotian  plains  for  rich  soil  and 


Economic  Conditions  in  Greece  23 

abundant  crops.  Attica,  in  spite  of  its  poor  soil,  can 
produce  wheat,  oil,  and  timber;  Messenia,  on  the  other 
hand,  is  noted  for  its  semi-tropical  fruits  and  flowers,  a 
strange  contrast  to  the  barren  soil  of  neighboring  Elis. 

Under  the  soil  of  Greece  were  also  various  de- 
posits that  added  materially  to  her  industrial  wealth. 
Near  Athens,  there  were  the  great  clay  pits  from  which 
the  Athenians  derived  the  material  for  their  exquisite 
pottery.  In  Mount  Pentelicus  were  the  celebrated  Pen- 
telic  marbles,  so  largely  used  for  building  purposes. 
Nor  were  there  lacking  the  precious  metals.  The  silver 
mines  of  Laurium  were  known  even  at  the  time  of  The- 
mistocles,  and  were  a  great  source  of  wealth.  Gold 
could  be  found  in  Siphnos  (Cyclades)  and  in  far-off 
Colchis,  and  in  the  Pangean  mountains  were  both  gold 
and  silver  mines. 

The  natural  wealth  of  Greece,  however,  must  not  be 
measured  only  by  what  could  be  found  strictly  within 
her  borders.  There  were  also  her  numerous  colonial 
settlements,  all  renowned  for  some  kind  of  product. 
Along  the  Black  Sea  were  the  huge  wheat-fields  and 
timber  districts.  The  lands  of  Asia  Minor  could  fur- 
nish the  fruits  with  which  to  grace  the  tables  of  the 
rich.  If  we  turn  to  the  Western  colonies,  there  was 
scarcely  a  town  in  Italy  and  Sicily  not  famed  for  some 
specialty.  Thus,  Acragas  was  famed  for  its  soil,  Syra- 
cuse for  its  horses,  Tarentum  for  its  oyster  fisheries. 

Of  all  these  different  products,  there  could  be  no 
doubt  that  wheat  was  the  most  important.  Upon  it  de- 
pended the  very  existence  of  the  citizen,  and  agriculture, 
therefore,  received  a  very  careful  study.  Even  in  early 
times,  we  find  in  Attica  an  acquaintance  with  the  differ- 
ent methods  of  irrigating  the  soil,  and  improving  its 
condition  by  means  of  fertilizers. 


24  Greek  and  Roman  Period 

The  grain  was  procured  from  the  country  through 
jobbers.  In  small  places  it  was  crushed  in  small  mor- 
tars, but  in  the  larger  towns  it  was  handed  over  to  the 
miller,  his  apparatus  consisting  of  a  huge  millstone  re- 
volving on  a  cylinder  of  iron.  The  miller  then  sold  the 
flour  to  the  bakers,  who  baked  it  into  loaves,  the  weight 
and  size  of  which  were  all  carefully  regulated  by  statute, 
and  examined  by  special  commissioners. 

The  greatest  care  was  taken  to  regulate  the  supply  of 
grain.  For  example,  in  the  period  that  followed  the 
war  with  the  Persians,  the  supply  of  this  essential  com- 
modity became  scarce,  and  a  law  was  passed  limiting  its 
exportation  under  severe  penalties.  Attempts  were 
also  made  to  prevent  merchants  from  unlawfully  enrich- 
ing themselves  by  sharp  methods  of  trade.  No  dealer 
was  allowed  to  take  more  than  one  obol  per  measure  of 
corn  for  what  he  had  originally  given.  Special  commis- 
sioners were  also  appointed  to  regulate  the  sale  of  corn 
(sitophulaces) .  Unfortunately,  however,  all  these  pre- 
cautions were  often  unavailing,  and  artificial  means  were 
often  used  to  raise  the  price  of  breadstuffs. 

After  grain,  perhaps,  the  olive  received  in  Athens  the 
greatest  attention.  The  olive  was  valued  more  for  its 
oil  than  for  the  fruit  itself,  which  was  dried  and  sold  in 
its  skin. 

Besides  the  cultivation  of  grain  and  of  the  olive,  that 
of  the  vine  was  also  perfected  to  a  considerable  extent. 
Trenches  were  carefully  dug  around  for  the  sake  of 
moisture,  and  the  tree  was  propped  up  by  artificial  sup- 
ports. The  juice  of  the  grape  was  procured  in  much 
the  same  way  as  it  is  in  certain  parts  of  Italy  to-day,  the 
grape  being  pressed  by  the  feet  and  the  juice  collected 
into  vats.  There  were  many  different  kinds  of  wines, 
the  principal  being  the  red  wine  procured  from  the 


Economic  Conditions  in  Greece  25 

grapes  on  the  hillside,  and  the  white  wine  from  the 
grapes  grown  on  the  plains. 

Besides  agriculture,  there  were  also  other  important 
industries,  which  appeared  even  from  the  earliest  times. 
Already,  in  the  Iliad  and  the  Odyssey,  we  read  of  car- 
penters and  masons,  and  in  certain  trades  the  principle 
of  division  of  labor  soon  became  fully  recognized.  In 
two  respects,  however,  Greek  manufacture  differed  con- 
siderably from  our  modern  system.  First,  in  early  times, 
the  family  was  largely  self-sufficient.  That  is  to  say,  the 
members  of  the  family  manufactured  all  its  own  neces- 
saries; some,  for  example,  preparing  the  food,  others 
making  the  different  pieces  of  furniture  and  articles  of 
apparel.  Even  when,  by  the  eighth  and  seventh  cen- 
turies before  Christ,  manufacturing  industries  became 
more  diffused,  certain  occupations  were  still  confined  to 
certain  families  owing  to  the  fact  that  the  son  generally 
followed  the  trade  or  profession  of  the  father.  Also, 
certain  trades  were  confined  to  certain  particular  streets; 
one  street  would  contain  all  the  bakers,  another  all  the 
butchers. 

Besides  this  local  distribution  of  trades,  another  re- 
spect in  which  the  Greek  system  differed  from  our  own 
was  that  guilds  and  trade  corporations  were  quite  un- 
known. No  doubt,  this  was  partly  owing  to  the  strong 
connection  between  the  family  and  the  trade.  It  is  thus 
curious  to  observe  that,  while  the  family  element  was 
prejudicial  to  the  quick  formation  of  the  State,  it  was 
also  a  very  successful  check  to  the  formation  of  any  arti- 
ficial combination  of  trade. 

Although,  however,  there  were  no  combinations  of 
trades,  or  of  members  of  the  same  trade,  there  appeared 
by  the  fifth  century  before  Christ  factories  of  a  very 
considerable  size.  Some  of  these  contained  hundreds  of 


26  Greek  and  Roman  Period 

workmen,  who  performed  their  tasks  under  the  super- 
vision of  a  kind  of  foreman. 

This  was  especially  so  with  regard  to  the  manufacture 
of  clothes.  By  the  sixth  and  fifth  centuries,  one  single 
factory  often  had  the  exclusive  production  of  some  par- 
ticular kind  of  dress.  One  factory,  for  example,  manu- 
factured men's  hats  exclusively,  another  women's 
hats  exclusively,  while  another  again  manufactured 
nothing  but  tunics.  It  is  evident  from  this  that  there 
must  have  been  a  great  number  of  employees  even  in  one 
factory. 

The  same  principle  of  division  of  labor,  of  allotting 
one  particular  task  to  certain  people,  exclusively  trained 
for  that  task,  is  also  found  in  the  building  industry.  The 
quarryman  extracted  the  stone  or  other  building  material 
from  the  quarries.  Then  one  class  of  men  cut  the 
material  into  the  required  shape,  while  yet  another  set  of 
men  had  the  exclusive  task  of  placing  the  blocks  of  stone, 
or  marble,  one  above  the  other.  Finally,  the  carpenters 
made  the  doors,  and  other  frames,  and  a  special  set  of 
men  placed  the  tiles  on  the  roof. 

In  the  construction  of  ordinary  dwellings  the  builder 
superintended  all  the  different  arrangements,  but  in 
large  public  edifices  architects  were  employed,  who  often 
enjoyed  considerable  repute,  and  were  admitted  into 
familiar  intercourse  with  the  great. 

This  division  of  labor  always  brings  into  existence 
men  of  remarkable  genius  and  long  experience.  Athens, 
in  this,  was  no  exception,  and  perhaps  in  no  industry  is 
this  so  well  illustrated  as  in  the  pottery  industry.  It  is 
true  that  the  earthenware  destined  for  ordinary  use  was 
rough  and  clumsy,  but,  on  the  other  hand,  the  artistic 
kind  of  earthenware  displays  the  greatest  talent  and 
technical  skill.  Certain  traditions  of  the  art  seem  to 


Economic  Conditions  in  Greece  27 

have  been  handed  down  from  father  to  son,  and  their 
splendid  results  can  still  be  seen  in  some  of  our 
museums. 

Altogether,  the  manufacturing  industries  of  the 
Greeks  display  a  great  amount  of  organization  and  in- 
dustrial skill.  And  it  is  not  to  be  wondered  at  if  in  later 
times  the  position  of  the  manufacturer  received  the 
recognition  it  deserved.  What  seems  at  first  to  have 
belittled  the  position  of  the  manufacturer  was  that  he 
sometimes  exhibited  greed  for  money.  Nothing  seems 
to  have  been  more  repellent  to  the  Athenian  mind  than 
an  open  display  of  avarice.  In  the  writings  of  Plato 
and  Aristotle  nothing  is  more  evident  than  the  fact  that 
the  manufacturer,  as  such,  was  deemed  worthy  of  re- 
spect, but  that  he  too  often  degenerated  into  a  seeker 
after  mere  material  gain,  and  thus  came  to  occupy  a 
lower  place  in  the  public  esteem. 

There  is  one  element  in  the  production  of  wealth  in 
ancient  Greece  that  must  not  be  overlooked,  namely,  the 
use  of  slave  labor.  Evidently,  this  must  make  a  consid- 
erable difference  in  the  rate  of  wages,  average  of  prices, 
and  especially  in  regard  to  the  relation  between  the  free 
laborer  and  employer.  Most  of  the  lower  forms  of 
labor,  such  as  working  in  the  mines,  rowing  the  galleys, 
and  many  of  the  tasks  in  the  different  factories  were 
done  by  slaves ;  nearly  all  domestic  work  in  the  private 
houses  was  also  done  by  them. 

The  result  was  that  the  greater  part  of  the  citizens 
were  free  to  devote  themselves  to  the  care  of  the  State, 
and  to  cultivate  their  own  individual  perfection.  A  high 
degree  of  culture  supposes  leisure,  and  this  leisure  was 
conditioned  by  the  fact  that  the  slaves  did  a  great  part 
of  the  manual  labor,  and  thus  enabled  the  citizen  to 
devote  himself  to  the  cares  of  State. 


28  Greek  and  Roman  Period 

SECTION  II 
DISTRIBUTION  OF  WEALTH 

The  distribution  and  interchange  of  wealth  naturally 
follow  upon  the  production  of  wealth.  But  the  process 
is  usually  slow.  This  is  especially  the  case  in  ancient 
times,  when  money,  the  common  medium  of  exchange, 
and  such  means  of  transport  as  ships  and  good  roads 
were  still  wanting.  Hence,  we  find  that,  in  Homeric 
times,  the  family  was  self-sufficient,  and  made  its  own 
necessaries.  And  even  when  the  town  took  the  place  of 
the  family  as  the  unit  of  distribution,  goods  still  passed 
directly  from  the  producer  to  the  consumer. 

It  was  the  sea,  more  than  anything  else,  that  hastened 
the  advent  of  wealth.  The  first  traders  were  the  Phe- 
nician  captains,  who,  at  first,  cautiously  hugged  the  coast 
and  made  their  wealth  as  much  by  piracy  as  by  honest 
trade.  But  the  place  of  the  pirate  was  soon  taken  by 
that  of  regular  traders.  These  naturally  visited  the 
places  with  the  best  harbors,  and  thus  Corinth,  Miletus, 
and  Athens  quickly  appear  as  the  great  centers  of  com- 
merce and  trade. 

At  the  same  time  as  the  circumference  of  trade  was 
enlarged,  the  appearance  of  money  as  a  common  medium 
of  exchange  greatly  facilitated  the  progress  of  the 
wheels  of  commerce.  At  first  the  coins  were  measured 
by  weight,  but  afterwards  by  tale,  and  each  coin  had 
stamped  upon  its  surface  its  own  proper  value. 

Another  element  in  the  progress  of  the  commerce  of 
Greece  was  the  banking  system.  Even  in  comparatively 
early  times,  there  were  bankers  in  Greece.  Owing, 
however,  to  the  multiplicity  of  their  functions  they  some- 
what differed  from  our  modern  banker.  The  Greek 


Economic  Conditions  in  Greece  29 

banker  was  at  once  a  money  changer,  a  money  lender, 
and  a  receiver  of  deposits.  As  money  changer,  he  ex- 
changed the  coins  of  the  different  nations — an  impor- 
tant function,  when  we  remember  that  almost  every 
important  city  minted  its  own  coins. 

He  also  loaned  money  at  interest.  It  was  in  this  way 
that  capital  and  labor  were  brought  together.  No 
doubt  the  rate  of  interest  was  high,  but,  on  the  other 
hand,  money  was  plentiful,  the  risks  were  great,  and  the 
banker  had  all  the  privileges  of  a  monopoly.  However, 
it  must  be  admitted  that  there  were  also  usurers  of  the 
worst  kind,  who  were  a  source  of  danger  to  the  com- 
monwealth and  of  ruin  to  individuals.  Plutarch  speaks 
of  instances  where  the  usurers  would  subtract  the  inter- 
est immediately  after  the  loan  was  made,  and  lend  it  out 
again,  also  on  interest. 

In  contracting  debts,  there  would  seem  to  have  been  in 
vogue  two  different  systems.  First,  there  was  the  infor- 
mal handshake;  second,  there  was  the  formal  contract, 
in  which  the  debtor  pledged  something  valuable  as  secur- 
ity of  payment.  In  very  early  times  he  pledged  even 
his  own  body,  but  this  was  forbidden  by  the  laws  of 
Solon. 

The  banker  was  also  a  receiver  of  deposits.  In  this 
respect  he  most  nearly  resembles  our  modern  banker. 
But  the  Greeks  were  slow  to  make  such  deposits.  The 
jars  of  money  that  are  still  found  from  time  to  time, 
while  they  contribute  to  our  knowledge  of  Greek  numis- 
matics, also  testify  to  a  strong  tendency  to  hoard. 

Together  with  the  banking  system  there  were  other 
appliances  of  commerce.  There  were  the  importers, 
whose  duty  it  was  to  carry  the  different  merchandise 
from  shore  to  shore.  There  were  also  consuls  (proxe- 
noi)  in  different  States,  who  looked  after  the  interests  of 


30  Greek  and  Roman  Period 

commerce,  and  who  were  likely  to  bring  together  seller 
and  buyer. 

Even  to  this  day  there  still  remain  the  ruins  of  what 
were  once  two  typical  centers  of  Greek  trade.  These 
are  the  ruins  of  the  deigma  or  exchange,  and  the  agora 
or  marketplace. 

The  deigma  was  the  place  where  sellers  exhibited 
samples  of  their  wares.  Such  a  custom  would  naturally 
save  the  expense  and  trouble  of  securing  the  services  of 
a  commercial  traveler.  In  Cuba,  at  the  present  day, 
there  is  still  some  kind  of  exchange  very  similar  to  the 
old  Greek  deigma,  and  many  traders  have  expatiated 
upon  its  advantages. 

Another  center  of  commerce  was  the  agora.  This 
was  the  marketplace,  where  the  goods  were  exposed  for 
retail  sale.  Fully  Greek  citizens  were  allowed,  without 
any  condition,  to  expose  their  wares  for  sale,  but  metics 
or  foreign  citizens  had  to  pay  duty,  such  sums  of  money 
going  to  swell  the  coffers  of  the  treasury.  In  the  center 
of  the  agora  was  an  open  space  surrounded  by  a  portico, 
and  this,  like  the  Roman  forum,  served  as  a  kind  of 
lounging  or  general  meeting  place  for  the  well-to-do. 
Each  part  of  the  agora  was  apportioned  to  its  own  par- 
ticular trade.  Thus,  the  lamp  sellers  would  be  in  one 
part,  the  fruit  sellers  in  another.  This,  perhaps,  was 
meant  to  harmonize  with  the  general  custom  of  setting 
apart  certain  streets  for  particular  trades. 

But  business  was  not  conducted  only  in  the  deigma, 
the  agora,  or  even  in  the  street  shops.  The  narrow 
streets  of  Athens  resounded  with  the  strong  and  strident 
cry  of  the  petty  huckster  or  hawker,  and  such  goods, 
even  more  than  those  exposed  for  sale  in  the  agora,  were 
disposed  of  only  after  a  considerable  amount  of  harangu- 
ing and  altercation. 


Economic  Conditions  in  Greece  31 

It  was  not  long  before  the  importance  of  commerce 
came  to  be  fully  realized  by  the  State,  and  of  this  the 
severe  laws  of  debt  are  more  than  a  sufficient  proof. 
Commerce  is  essentially  based  on  credit  and  good  faith. 
If  this  is  shaken,  all  falls  to  the  ground.  At  all  costs, 
the  lender  must  be  put  in  a  position  of  safety,  for,  in  the 
words  of  Demosthenes,  "Commerce  emanates,  not  from 
the  borrower,  but  from  the  lender;"  hence  the  severity 
of  the  early  laws  of  debt.  Even  the  reputation  of  the 
personal  integrity  of  the  merchant  was  secured  by  law, 
which  inflicted  severe  punishment  on  whomsoever  should 
falsely  accuse  him.  State  recognition  also  showed  its 
activity  in  the  appointment  of  commercial  courts  to  de- 
cide cases  involving  commercial  laws,  all  means  being 
used  to  arrive  at  a  prompt  decision. 


SECTION  III 
STATE  ADMINISTRATION  OF  FINANCES 

It  was  not  long  before  State  recognition  of  commerce 
led  to  interference  for  good  or  evil  with  every  detail  of 
commercial  life.  For  the  principle  that  the  citizen  was 
absolutely  subordinate  to  the  State,  and  must  seek  his 
own  perfection  through  the  collective  perfection  of  the 
State,  naturally  applied  to  commerce  as  well  as  to  every 
other  department. 

From  some  points  of  view  the  State  regulation  of  trade 
was  highly  beneficial.  The  overseers  of  the  harbor,  of 
whom  there  were  ten  appointed  every  year,  the  inspec- 
tors of  weights  and  measures,  and  the  inspectors  of  the 
different  goods  that  were  sold,  performed  tasks  both 
useful  and  necessary.  Such  officials  were  a  means  of 


32  Greek  and  Roman  Period 

checking  wrong-doing  and  commercial  robbery.  Almost 
equally  beneficial  was  the  care  shown  by  the  State  for  the 
poor.  There  was  a  special  fund  set  aside  for  the  chil- 
dren of  those  who  died  in  war.  Pisistratus,  the  Tyrant, 
illustrated  one  phase  of  the  paternal  nature  of  tyrannical 
governments  by  causing  special  provision  to  be  made  for 
those  who  were  mutilated  in  war.  If,  in  the  early  years 
of  Greek  history,  no  mention  is  made  of  other  classes  of 
needy  persons,  the  presumption  is  that  there  were  none. 
It  must  have  been  after  the  Peloponnesian  war  that  des- 
titution became  common.  After  that  time,  bounties  or 
alms  were  sometimes  awarded  by  decrees  of  the  people. 
This,  however,  was  only  done  when  the  Senate  had 
carefully  examined  into  the  merits  of  the  case,  and  the 
amount  never  exceeded  two  obols  (about  eight  cents). 
At  the  same  time,  mention  is  also  made  of  the  education 
of  orphan  children  by  the  State. 

Besides  looking  after  the  poor  and  needy,  the  State 
also  busied  itself  with  the  task  of  regulating  the  course 
of  trade  in  the  interests  of  the  general  welfare. 

Thus,  it  was  forbidden  to  kill  sheep  and  goats  before 
the  lambing  season  was  over,  the  object  of  this  being  to 
prevent  the  depletion  of  these  animals.  A  similar  inten- 
tion underlay  the  laws  that  forbade  the  exportation  of 
certain  articles,  such  as  wheat,  and  even  forbade  the 
loan  of  money  to  any  vessel  that  did  not  return  to  Athens 
with  a  cargo  of  corn.  It  was  also  in  the  interests  of  the 
consumer  that  the  price  of  salt  was  carefully  fixed  by 
statute,  and  that,  as  we  have  already  seen,  the  profits  of 
dealers  in  grain  were  prevented  from  colliding  with  the 
welfare  of  the  citizen  buyers. 

On  the  whole,  State  interference  with  trade  does  not 
seem  to  have  been  productive  of  very  evil  results  in 
Greece,  for  a  considerable  margin  of  liberty  was  allowed 


Economic  Conditions  in  Greece  33 

to  buyer  and  seller,  and  there  seems  to  have  been  very 
little  dishonesty  on  the  part  of  overseers  and  other  public 
officials. 

Certain  defects,  however,  became  somewhat  apparent 
in  the  management  of  the  State's  own  finances.  In  an 
absolute  democracy,  where  the  ultimate  control  of  the 
money  is  vested  in  the  great  body  of  the  citizens,  and 
when  all,  one  after  another,  try  to  get  into  positions  of 
financial  trust,  defalcations  are  sure  to  be  found.  It  is 
true  that  the  actual  administration  of  the  public  treasury 
was  confided  to  the  Senate,  which  received  the  dues  and 
other  sources  of  revenue,  and  paid  out  whatever  sums 
were  necessary.  But  under  the  Senate  were  various 
officials  who  were  responsible  for  collecting  and  distribu- 
ting the  revenues,  and  it  was  among  these  that  dishon- 
esty was  sometimes  to  be  found.  Among  these  officials 
was  the  board  of  ten,  called  poletai,  one  member  being 
elected  from  each  of  the  ten  tribes.  These  poletai  regu- 
lated the  levy  of  taxes.  There  were  also  the  officials 
who  collected  the  tribute  from  the  allies,  and,  finally,  a 
special  set  of  officials  who  collected  the  arrears  of 
tribute.  All  these  found  abundant  opportunities  for 
dishonesty. 

The  money  thus  taken  in  was  handed  over  to  the 
receivers  or  treasurers  (apodecteres) .  Their  chief  duty 
seems  to  have  been  that  of  erasing  the  debtors'  names  in 
the  presence  of  the  Senate,  and  distributing  the  sums  of 
money  that  were  paid. 

Naturally  there  must  have  been  a  considerable  amount 
of  bookkeeping  and  auditing.  In  the  keeping  of  ordi- 
nary private  accounts  slaves  were  employed  as  clerks, 
because  they  could  be  forced,  by  torture,  to  give  evi- 
dence. But  only  citizens  could  be  employed  as  clerks  in 
the  public  service.  These  clerks  had  to  render  an 


34  Greek  and  Roman  Period 

account  to  a  set  of  officials,  called  the  logistai,  or  public 
auditors.  These  officials,  however,  could  often  be 
bribed.  It  thus  came  to  pass  that  the  only  means  of  cor- 
recting the  balance  between  receipts  and  expenditures 
and  of  checking  the  dishonesty  of  public  officials  was 
partly  reduced  to  a  helpless  condition. 

Altogether,  peculation  became  a  crime  extremely  com- 
mon among  Greek  officials.  Even  Pericles  himself,  in 
this  particular,  was  not  exempt  from  suspicion.  Nor  is 
this  a  matter  of  surprise.  The  elaborate  apparatus 
necessary  for  the  prevention  and  detection  of  public 
fraud  is  an  invention  of  comparatively  modern  times. 

A  brief  survey  of  the  production  and  distribution  of 
wealth  in  ancient  Greece  will  have  revealed  much  of 
the  same  good  and  evil  that  we  find  even  in  our  own 
modern  system.  As  time  went  on,  the  organization  of 
industry  became  more  and  more  complex,  and  presented 
many  of  the  problems  that  still  press  for  solution  even  at 
the  present  day.  We  must  now  consider  the  way  in 
which  this  economic  system  determined  some  of  the 
important  crises  of  Greek  history. 


CHAPTER   II 

INFLUENCE    OF   THE    ECONOMIC   ELEMENT   IN 
MOLDING  GREEK   HISTORY 

OF  ALL  the  Greek  City-States,  Athens  stands  forth  as 
typical  of  everything  that  is  greatest  and  noblest  in 
Greek  history.  It  was  Athens  that  headed  the  Greek 
States  in  the  successful  resistance  to  the  Persian  invader. 
It  was  Athens  that,  through  her  colonial  empire,  offered 
at  one  time  the  best  prospects  of  effecting  the  unity  of 
Hellas.  It  was  Athens  that,  owing  to  her  peculiar 
circumstances,  has  been  able  to  offer  to  us  the  purest 
type  of  democracy.  It  is  in  Athens  that  we  find 
unified  and  summarized  the  history  of  all  the  Greek 
States. 

In  studying  the  critical  turning  points  of  Athenian 
history,  we  can  not  fail  to  notice  how  the  economic  ele- 
ment has  always  been  a  preponderating  influence.  Dur- 
ing the  early  years  of  her  existence,  Athens  had  to  face 
three  important  economic  problems.  She  had  to  deal 
with  the  appalling  decline  of  agricultural  industry,  with 
the  extreme  poverty  of  the  lower  classes,  and  with  the 
stagnation  of  trade.  These  three  problems,  if  left  un- 
solved, might  easily  have  led  to  the  overthrow  of  Athens 
in  the  times  immediately  preceding  the  reforms  of  Solon, 
and  it  was  only  the  prompt  remedy  that  he  applied  that 
led,  not  only  to  the  removal  of  grave  economic  evils, 
but  to  the  formation  of  a  full  and  perfect  democracy. 
First,  there  was  the  agrarian  problem.  The  land  was 
worked  on  the  tenant  system.  This  means  that  the  pro- 
prietor of  the  land  would  let  it  out  to  somebody  else 
who  agreed  to  pay  rent  in  return  for  the  occupation  of 


36  Greek  and  Roman  Period 

the  land.  The  rent  paid  was  no  less  than  five-sixths  of 
the  produce.  This  arrangement  left  only  one-sixth  for 
the  support  of  the  tenant  and  his  family.  Possibly, 
if  the  holding  was  unusually  large,  the  one-sixth  part 
might  prove  sufficient.  But,  in  the  majority  of  cases, 
it  was  not.  Moreover,  if  the  division  had  been  more 
equitable,  if  it  had  been  what  it  usually  now  is,  one- 
half,  or,  as  in  some  parts  of  Italy,  two-thirds,  even  then 
the  interests  of  agriculture  would  have  suffered.  For 
the  knowledge  that  so  large  a  proportion  of  any  profits 
on  the  improvement  of  the  land  must  go  to  the  landlord 
always  acts  as  an  effective  brake  on  the  energies  of  the 
cultivator. 

In  addition  to  the  evil  effect  of  this  abiding  cause, 
there  had  also  been  a  succession  of  bad  harvests.  The 
produce  was  reduced  to  microscopic  proportions,  and 
yet,  even  of  this,  the  five-sixths  had  to  go  to  the 
landlord.  Only  one  resort  was  left  to  the  wretched 
tenant,  and  that  was  to  borrow — often  giving  as  security 
his  own  body.  Such  a  remedy,  however,  only  delayed 
the  ruin,  to  make  it  still  more  final  and  overwhelming. 
Multitudes  of  peasants,  unable  to  pay  their  debts,  were 
reduced  to  the  condition  of  slavery,  the  land  was  left 
to  go  out  of  cultivation,  and  there  was  fast  rising  in 
the  State  an  ever  increasing  number  of  men  whose  misery 
and  starvation  were  a  constant  thunder-cloud  hanging 
over  the  nation. 

The  second  problem  was  the  extreme  disproportion 
of  wealth  between  the  upper  and  lower  classes.  Capital 
was  congested  in  the  hands  of  a  few  rich  men.  It  failed 
to  circulate  freely,  and  this  always  produces  a  danger- 
ous state  of  things  in  the  body  politic.  This  was  espe- 
cially so  in  the  ancient  City-State.  The  whole  area  of 
the  Athenian  City-State  did  not  exceed  thirty-six  square 


Influence  of  the  Economic  Element  37 

miles.  Even  within  this  area,  the  active  pulsating  life 
of  the  State  was  limited  to  Athens  itself  and  the  country 
immediately  surrounding.  Wealth  and  rags  were  con- 
stantly encountering  each  other,  and  the  results  were 
ever  increasing  pride  on  the  one  hand,  and,  on  the  other, 
ever  increasing  jealousy  and  discontent. 

The  third  great  problem  was  stagnation  of  trade. 
Free  commercial  intercourse  between  nation  and  nation 
is  greatly  dependent  upon  a  convenient  means  of  ex- 
change; in  other  words,  a  common  currency.  Up  till 
now,  Athens  had  adopted  the  old-fashioned  Boeotian 
system  of  currency,  and  this  had  the  effect  of  cutting  her 
off  from  the  more  lucrative  commerce  with  the  pros- 
perous cities  and  fertile  plains  of  the  Asiatic  seaboard. 
There  were  also  other  subsidiary  causes  of  stagnation 
of  trade,  such  as  the  faulty  incidence  of  taxation,  by 
which  is  meant  that  taxes  fell  unequally  and  unjustly 
on  the  various  classes  of  society;  and,  finally,  there  was 
the  want  of  the  capital  necessary  in  order  to  initiate 
certain  industries.  Owing  to  these  different  causes, 
trade  in  Athens,  as  also  her  whole  commercial  pros- 
perity, had  dangerously  declined. 

Such  were  the  three  great  problems  confronting 
Athens  at  the  time  of  Solon.  An  immediate  solution 
of  them  was  urgently  necessary.  Elements  of  disrup- 
tion were  fast  manifesting  themselves  in  the  State,  and 
even  the  political  existence  of  Athens  seemed  on  the 
point  of  being  submerged  by  the  rising  waters  of  sedi- 
tion and  discontent. 

No  doubt  political  causes  of  discontent  were  also 
present,  but  these  were  as  yet  inarticulate.  Demands 
for  political  reform  presuppose  a  certain  development 
of  political  knowledge,  and  the  Athenian  populace,  in 
such  early  times,  could  hardly  have  been  conscious  of 


38  Greek  and  Roman  Period 

their  exclusion  from  political  power,  and,  still  less  so, 
of  the  means  of  removing  such  exclusion. 

It  was  Solon,  who,  with  a  sagacity  far  ahead  of  his 
age,  perceived  clearly  the  root  of  the  evil,  and,  what 
was  more  important,  applied  a  remedy  that  was  not 
worse  than  the  disease.  His  first  measures  of  reform 
were  partly  economical  and  partly  political,  and  were 
so  interwoven  with  one  another  as  to  furnish  an  inter- 
esting object  lesson  of  the  connection  between  economics 
and  history. 

The  intolerable  condition  of  the  people  was  at  once 
alleviated.  Debtors  were  placed  in  a  position  where 
they  could  once  more  labor  for  their  daily  bread. 
Pledges,  whether  in  the  way  of  land  or  of  bodies,  were 
at  once  restored  to  the  debtor.  While,  even  previous 
to  Solon's  time,  it  was  considered  sacrilegious  to  pledge 
the  land  that  was  the  sacred  property  of  the  family,  it 
was  now  made  illegal  also  to  pledge  one's  own  body  as 
security  for  debt.  At  the  same  time  the  rate  of  inter- 
est that  could  be  legally  demanded  was  considerably  re- 
duced. 

Some  historians,  following  the  new  Aristotle,  have 
asserted  that  Solon  abolished  all  outstanding  debts. 
Such  a  drastic  measure,  however,  would  have  been  quite 
contrary  to  the  sane  reasonableness  of  Solon's  reforms. 
If  any  further  disproof  were  needed,  we  find  it  in  the 
dissatisfaction  of  the  extreme  radical  party.  The  proba- 
bility is,  however,  that  Solon,  recognizing  the  natural 
limits  of  the  jurisdiction  of  the  State,  absolved  from 
their  liability  all  the  creditors  of  the  State. 

Solon  then  turned  his  attention  to  the  betterment  of 
the  condition  of  the  trading  classes  of  the  community. 
This  he  did  in  the  first  place  by  substituting  for  the  old 
antiquated  system  of  coinage  the  new  coinage  already 


Influence  of  the  Economic  Element  39 

in  use  by  the  great  commercial  centers  of  Chalcis  and 
Corinth.  What  the  exact  nature  of  this  change  was,  we 
can  conjecture  only  from  Plutarch,  who  says  that  Solon 
made  the  mna  to  consist  of  one  hundred  drachmas, 
whereas  before  it  consisted  of  only  seventy-three.  The 
general  result  seems  to  have  been  to  lower  the  value  of 
the  monetary  standard,  and  thus  make  it  easier  for 
debtors  to  discharge  their  debts.  Such  an  advantage, 
however,  would  be  comparatively  slight,  in  comparison 
with  that  of  assimilating  the  Attic  currency  with  that  of 
Euboea  and  the  other  leading  localities. 

In  other  ways,  also,  did  Solon  encourage  industry. 
He  forbade  all  exports  save  that  of  the  olive,  which 
was  so  plentiful.  No  doubt,  to  many  modern  econo- 
mists, this  might  seem  most  prejudicial  to  the  best  inter- 
ests of  trade,  but  we  must  remember  that  the  necessities 
of  life  in  Athens  were  few  in  number,  and  that  the  idea 
was  not  to  barter  the  essential  for  what  was  only  of 
secondary  and  immaterial  importance.  Solon  also  en- 
couraged certain  industries  that  would  otherwise  lan- 
guish for  want  of  support.  In  this  he  was  only  antici- 
pating the  modern  system  of  bounties  in  which  the 
manufacturer  is  paid  for  every  amount  of  goods  that 
he  produces.  In  Athens,  such  a  policy  was  signally  suc- 
cessful. Industries  that  were  perishing  for  lack  of 
initial  support  speedily  began  to  revive,  and  to  acquire 
an  independent  and  flourishing  existence. 

Such  were  the  most  important  of  the  economic  re- 
forms of  Solon.  They  arrested  famine  and  starvation, 
warded  off  the  danger  of  a  revolution  on  the  part  of 
starving  fanatics,  and  gradually  brought  about  the 
formation  of  a  strong  middle  class.  Perhaps  it  was  the 
last  result  that  was  the  most  important  of  all.  No  State 
can  exist  long  or  healthily  without  a  strong  middle  class. 


4O  Greek  and  Roman  Period 

History  shows  that  it  is  the  middle  class  that  saves  soci- 
ety both  from  the  despotism  of  monarchs  and  the 
caprices  of  the  lower  classes.  And  it  was  owing  to  the 
strength  of  the  middle  class  that  Athens  was  able  to  pre- 
sent to  the  world  the  flower  of  a  perfect  democracy,  as 
well  as  to  lead  for  so  many  years  the  onward  march  of 
Greek  progress  and  civilization. 

Even  the  political  reforms  of  Solon  rested  mainly 
upon  the  solid  bedrock  of  an  economic  foundation. 
First  in  importance  was  his  division  of  Athenian  society 
into  four  classes,  according  to  the  amount  of  wealth 
which  they  possessed.  The  first  class  was  called  penta- 
kosiomedimnoi,  whose  annual  income  ranged  from  five 
hundred  medimni  upward;  the  second  class  was  called 
hippeis,  and  comprised  all  whose  income  was  between 
three  hundred  and  five  hundred  medimni;  the  third 
class,  zeugitai  (or  owners  of  a  yoke  of  oxen) ,  required  an 
income  ranging  between  one  hundred  and  fifty  and  three 
hundred  medimni,  while  the  fourth  class,  thetes,  con- 
sisted of  all  whose  income  fell  below  one  hundred  and 
fifty.  Since  only  the  members  of  the  two  upper  classes 
were  eligible  to  the  high  offices  of  State,  such  an  ar- 
rangement substituted  an  aristocracy  of  wealth  for  that 
of  birth.  In  other  words,  it  substituted  an  economic  for 
an  hereditary  qualification  for  office,  and  thus  introduced 
a  general  tendency  in  the  direction  of  democracy.  For 
a  barrier  of  birth  is  absolutely  insurmountable,  while  the 
barrier  of  wealth  is  an  obstacle  that  can  be  overcome. 
A  poor  man,  endowed  with  unceasing  industry,  and 
helped  by  good  fortune,  might  rise  from  the  lowest  to 
the  highest  class,  and  thus  become  a  candidate  for  the 
supreme  offices  in  the  State,  even  for  the  office  of 
archon. 

The  reforms  of  Solon  had  the  immediate  effect  of 


Influence  of  the  Economic  Element  41 

introducing  equality  into  the  State,  and  of  preparing  the 
way  for  future  reforms.  The  people  were  relieved  from 
their  intolerable  economic  condition,  and  at  the  same 
time  were  entrusted  with  just  so  much  political  power 
as  to  prevent  them  from  ever  again  being  oppressed,  and 
to  allow  them  a  safe  opportunity  for  self-education. 
The  power  which  the  people  now  had  of  electing  their 
magistrates,  and  of  trying  them  at  the  end  of  their  year 
of  office,  effectually  prevented  an  attempt  on  the  part  of 
the  rulers  to  trample  upon  their  newly  acquired  politi- 
cal and  economic  rights. 

The  reforms  of  Clisthenes,  a  few  years  afterwards, 
supplied  what  was  wanting  in  the  reforms  of  Solon,  and 
still  further  perfected  these  on  the  same  lines  of 
democracy.  Fierce  factions  in  the  State  still  continued 
after  Solon's  time.  The  chief  causes  of  these  were 
tribal  exclusiveness  and  tribal  jealousies  —  in  other 
words,  the  family  unit  of  organization  interfered  with 
the  solidification  of  the  State  as  a  whole.  Such  an  ob- 
stacle was  now  removed  by  the  reforms  of  Clisthenes, 
who  substituted  ten  for  the  old  four  tribes,  and  care- 
fully distributed  the  townships  among  the  ten  tribes  so 
that  the  old  local  interests  should  not  again  revive.  As  a 
consequence,  the  old  senate  of  four  hundred  was  also 
superseded,  and  another  senate  formed,  consisting  of 
five  hundred  members,  fifty  being  elected  from  each 
of  the  ten  tribes. 

Finally,  Clisthenes  completed  the  democratic  reforms 
of  Solon  by  the  more  frequent  meetings  of  the  ecclesia, 
or  popular  assembly,  and  by  vesting  all  the  practical 
supreme  power  in  the  hands  of  this  sovereign  body  of 
the  people. 

By  this  time,  the  City-State  of  Athens  was  fast  rising 
toward  the  zenith  of  her  economic  and  commercial 


42  Greek  and  Roman  Period 

prosperity.  Athens  was  fast  becoming  the  emporium  of 
Greece.  Her  marketplace  was  the  largest  and  the  most 
central  in  Greece.  Crowds  of  foreign  merchants  from 
most  distant  parts  thronged  the  Piraeus,  and  wealth  was 
now  pouring  fast  into  her  lap. 

It  is  no  wonder  that  Athens,  after  the  reforms  of 
Solon  and  Clisthenes,  was  able  to  head  the  Greek  re- 
sistance to  the  Persian  invader.  It  was  the  money  of 
Athens  that  built  the  most  important  ships  of  its  navy 
and  thus  dealt  the  decisive  blow  at  the  battle  of 
Salamis.  And  it  was  the  wonderful  fecundity  and  re- 
cuperative power  of  Athenian  capital,  under  all  shapes 
and  forms,  that  enabled  Athens,  after  the  devastating 
visits  of  the  Persians,  to  build  another  city,  fairer  and 
far  stronger  than  before. 

But,  after  the  Persian  wars,  there  entered  a  new  ele- 
ment into  the  economic  life  of  Athens — an  element  that, 
at  one  time,  seemed  to  promise  to  her  the  sovereignty 
of  the  whole  Grecian  world,  but  eventually  brought 
about  her  ruin.  This  was  the  colonial  empire  of 
Athens,  an  empire  that  was  formed  out  of  the  con- 
federacy of  Delos. 

It  was  owing  to  the  guiding  hand  of  Pericles  that  the 
confederacy  of  Delos  became  transformed  into  a  mari- 
time empire  so  vast  that  it  practically  turned  the  waters 
of  the  ^Egean  and  the  Hellespont  into  an  Athenian  lake. 
It  was  also  under  Pericles  that  Athens  attained  its  full 
economic  development.  Some  of  the  features,  however, 
which  were  introduced  by  him  mark  not  only  the  turn- 
ing point,  but  also  the  beginning  of  the  decline  of 
Athenian  greatness. 

The  assertion  of  Athenian  supremacy  was  in  itself  a 
cause  of  discontent  to  the  allies.  The  loudest  note  in 
the  general  chorus  of  disapproval  at  the  assertive  policy 


Influence  of  the  Economic  Element  43 

of  Athens  was  that  Pericles  used  the  contributions  of 
the  allies  for  the  purpose  of  strengthening  and  beau- 
tifying Athens.  The  allies  complained  that  this  was  a 
case  of  misappropriation,  for  the  contributions  had 
always  been  made  for  the  purpose  of  a  common  defense 
against  the  Persians. 

Even  from  the  very  beginning,  the  allies  had  shown 
sensitiveness  on  this  point.  Thus,  they  objected  to  the 
term  phora,  as  applied  to  the  common  contribution,  and 
insisted  on  its  being  called  suntaxis.  Their  chagrin, 
therefore,  can  easily  be  imagined  when  Pericles  directed 
their  contributions  wholesale  to  the  personal  adornment 
and  utility  of  Athens. 

Pericles,  however,  excused  himself  by  saying  that 
Athens  had  sufficiently  fulfilled  her  duty  in  defending 
the  allies  from  any  possible  attack  from  the  Persians, 
that,  so  long  as  this  was  the  case,  the  purpose  of  the 
contributions  had  been  fulfilled.  This  statement,  how- 
ever, seemed  to  the  allies  an  excuse  rather  than  a  reason. 
They  bitterly  resented  the  high-handed  policy  of  Peri- 
cles, and  their  discontent  soon  became  chronic. 

It  must  be  admitted  that  the  administration  of  the 
contributions  of  the  allies  does  great  credit  to  the  self- 
restraint  of  Athens,  and  the  sagacity  of  Pericles.  Many 
other  States  would  have  wasted  the  funds  in  wide  pro- 
fusion and  wasteful  extravagance;  whereas  Pericles 
spent  the  money  on  worthy  objects,  such  as  the  advance- 
ment of  art  and  culture.  Moreover,  Pericles,  in  his  dis- 
tribution of  the  funds,  showed  remarkable  sagacity  and 
economic  forethought. 

According  to  Plutarch,  he  did  not  wish  that  the 
Athenian  citizens  should  go  without  their  share  in  the 
wealth  that  had  been  accumulated  through  the  con- 
quests and  progress  of  all  the  citizens.  Pericles,  ac- 


44  Greek  and  Roman  Period 

cording  to  the  same  author,  laid  the  foundations  of 
great  edifices,  which  would  require  multitudes  of  indus- 
tries of  every  kind  in  order  to  complete  them.  "Differ- 
ent materials,"  to  use  the  words  of  Pericles,  "such  as 
stone,  brass,  iron,  ebony,  cypress  wood,  etc.,  would  re- 
quire special  artisans  for  each,  such  as  carpenters, 
modelers,  smiths,  stone-masons,  painters,  embroiderers, 
and  makers-in-relief,  and  also  bring  men  into  the  city, 
such  as  sailors  and  captains  of  ships,  and  for  those  which 
came  by  land,  as  carriage  builders,  horse  breeders,  rope 
makers.  Each  trade,  moreover,  would  employ  a  num- 
ber of  unskilled  laborers,  so  that  there  would  be  work 
for  every  person  of  every  age  and  class." 

These  words  of  Pericles  are  full  of  significance. 
They  show  the  mental  economic  development  of  his 
time,  as  well  as  his  broad  sympathy  for  every  class  of 
industry.  His  last  sentence  is  especially  worthy  of  at- 
tention. It  shows  his  acquaintance  with  the  economic 
distinction  between  skilled  and  unskilled  labor,  and  the 
need  of  providing  for  both  classes. 

Surely  his  popularity  was  founded  on  something  else 
besides  a  majestic  presence  and  a  gift  of  sonorous  lan- 
guage. His  deeds  speak  as  eloquently  as  his  words  for 
the  good  of  the  State.  At  no  time  in  the  history  of 
Athens  was  money  so  plentiful  and  so  well  distributed. 

His  policy  of  paying  those  who  took  part  in  the  ser- 
vice of  the  State  requires,  however,  some  explanation. 
Already  there  had  been  precedents  for  such  a  policy, 
but  Pericles  carried  it  to  its  fullest  extent.  According 
to  Plutarch,  he  extended  the  payment  for  public  ser- 
vice to  the  dicastai,  namely,  to  those  who  were  serv- 
ing as  jurors;  but  this  really  meant  the  payment  of  all 
those  who  took  part  in  the  public  service  of  the  State. 

Taking  these  into  account,  there  must  have  been  a 


Influence  of  the  Economic  Element  45 

considerable  number  of  men  in  the  receipt  of  public  pay. 
At  one  time,  there  were  no  fewer  than  forty-eight  hun- 
dred and  eighty  men  engaged  in  military  duties  of  a 
remunerative  kind,  while  there  were  also  seventy-nine 
hundred  employed  in  civic  duties,  also  receiving  pay 
from  the  State. 

During  the  time  of  Pericles,  however,  no  evil  conse- 
quences seem  to  have  resulted  from  such  a  system. 
Moreover,  even  according  to  our  modern  views,  it  is 
only  just  that  those  who  contribute  their  time  and  labor 
to  the  service  of  the  State  should  receive  some  compensa- 
tion. 

We  must  now  turn  to  the  consideration  of  the  weak 
points  in  the  economic  system  existing  at  the  time  of 
Pericles.  They  are  important,  as  showing  that  not  only 
the  rise,  but  also  the  fall  of  Athenian  greatness  must 
be  sought  for  in  economic  facts. 

One  of  these  defects  we  have  hinted  at  already.  Ex- 
treme dissatisfaction  had  been  expressed  by  the  allies 
at  the  way  in  which  Pericles  had  appropriated  the  funds 
of  the  League  of  Delos.  Another  defect,  rather  simi- 
lar to  this,  might  also  be  mentioned,  namely,  the  nature 
of  the  Athenian  Cleruchy.  The  Cleruchy  was  not  an 
independent  colony,  but  a  settlement  of  Athenian  citi- 
zens still  depending  upon  Athens.  The  chief  Cleruchies 
were  at  Chalcis,  Naxos,  Andros,  and  Lemnos.  There 
were  various  reasons  for  such  foundations.  One  would 
be  the  natural  desire  of  having  outside  lands  brought 
under  the  direct  contact  of  Athenian  influence,  especially 
such  a  close  and  important  territory  as  was  the  island  of 
Euboea.  A  second  reason  was  the  desire  to  establish 
outposts  on  the  trade  route  between  Athens  and  the 
Black  Sea. 

The  inhabitants  of  the  Cleruchies,  however,  became 


46  Greek  and  Roman  Period 

a  source  of  danger  rather  than  of  advantage  to  the 
Athenians.  Their  pride  and  arrogant  interference  with 
the  natives  of  the  country  were  intolerable.  In  fact, 
the  countries  in  which  the  Cleruchies  were  planted  be- 
came even  more  zealous  than  the  allies  to  cast  off  the 
yoke  of  Athenian  rule. 

Another  and,  perhaps,  the  most  fatal  defect  in  the 
economic  administration  of  Athens  was  that  the  citizens 
themselves  generally  held  aloof  from  the  trading  and 
commercial  movements  of  the  time.  Labor  and  com- 
merce were,  for  the  most  part,  in  the  hands  of  slaves  and 
alien  residents.  It  is  true  that,  with  regard  to  the  slaves, 
they  were  treated,  for  the  most  part,  kindly.  Indeed, 
their  comfortable  condition  would  surpass  that  of  many 
of  our  modern  workingmen.  It  was  only  in  remote  dis- 
tricts, where  the  slaves  were  herded  together  in  great 
numbers,  that  we  find  anything  like  merciless  severity. 

The  resident  aliens  were  also  of  service  to  the  State, 
not  only  on  account  of  their  loyalty,  but  because  by  their 
taxes  they  contributed  to  the  wealth  of  the  State.  Not 
only,  as  we  have  seen,  were  the  resident  foreigners 
obliged  to  pay  a  tax  for  selling  their  wares  in  the  market- 
place, but  each  family  had  to  pay  a  yearly  tax,  and  then, 
again,  it  was  their  increasing  industry  that  went  to  swell 
the  trade  and  commerce  of  Athens. 

But,  all  this  time,  the  Athenian  citizens  them- 
selves were  living  on  the  labor  of  others.  They  were 
not  the  producers  of  the  wealth  that  they  so  lavishly  dis- 
tributed, and  it  was  this  that  formed  one  of  the  main 
fundamental  differences  between  Athenian  and  mod- 
ern democracy.  The  modern  democracy  has  all  the 
energy  and  recuperative  powers  of  the  living  work- 
man. It  can  produce  its  own  capital.  It  is  not  a  para- 
site, living  on  others  and  dependent  on  others,  and  thus, 


Influence  of  the  Economic  Element  47 

when  danger  and  misfortune  threaten,  it  is  capable  of 
exhibiting  both  wisdom  and  fortitude.  Even  though 
calamities  may  happen,  it  can  reproduce  all  the  capital 
it  may  have  lost. 

Such  was  not  the  case  with  the  Athenian  democracy. 
Culture  and  refinement  alone  do  not  make  up  the 
strength  of  a  nation.  When,  for  its  material  comforts 
and  necessities,  it  has  to  depend  upon  others,  then  it 
becomes  weak  and  hampered.  The  economic  grandeur 
and  splendor  of  Athens  were  after  all  only  borrowed 
from  others.  They  were  not  built  upon  the  solid  bed- 
rock of  economic  industry  and  resourcefulness,  and  when 
the  waves  broke  against  the  edifice  it  was  bound  to  fall. 

It  is  here  that  we  find  the  explanation  of  the  speedy 
downfall  of  Athens  after  the  death  of  Pericles.  Owing 
to  his  genius,  the  plan  of  campaign  against  the  Spartans 
was  successful,  but  when  he  died  the  Athenian  democ- 
racy began  to  show  itself  in  its  true  character.  It 
showed  a  complete  want  of  ways  and  means.  It  was 
wanting  in  the  mental  qualities  that  come  only  from  the 
presence  of  industry  and  self-initiative. 

Nor  was  this  all.  Great,  indeed,  had  been  the  re- 
sources of  Athens  at  the  beginning  of  her  long  war  with 
Sparta.  Besides  all  her  naval  and  military  resources, 
she  had  in  the  treasury  no  less  than  six  thousand  talents. 
But  even  with  all  this,  she  could  not  stand  the  continual 
drain  upon  her  resources.  She  was  continually  spending 
without  reproducing.  This  condition  of  internal  weak- 
ness was  hastened  by  the  dissatisfaction  of  the  allies. 
The  long  war  of  seventeen  years  was  at  length  brought 
to  a  close  by  the  complete  and  final  triumph  of  the  mili- 
tary forces  of  Sparta. 

The  next  few  years  of  Greek  history  mark  the  rapid 
decline  of  the  Greek  States,  one  after  another.  Sparta 


48  Greek  and  Roman  Period 

for  a  time  has  the  ascendency,  then  Thebes.  It  is  not 
till  the  time  of  Alexander  the  Great  and  the  Macedo- 
nian conquests  that  we  step  out  from  the  murky  atmos- 
phere of  petty  strifes  and  factions  into  the  salubrious 
region  of  great  events. 

When  Alexander  succeeded  to  the  throne  he  seemed 
to  have  solved  the  task  of  forming  a  united  Greece. 
The  whole  of  Greece  proper  was  brought  under  his  con- 
trol, while  powerful  Macedonian  fortresses  would  have 
checked  any  revolution  if  such  were  attempted. 

Even  during  this  period,  however,  economics  as  a 
theory  was  still  undergoing  a  gradual  evolution,  but  in 
a  new  direction.  Hitherto  the  Greeks  had  busied  them- 
selves with  political  economy  more  as  an  art  than  as  a 
science;  now  they  begin  to  regard  it  from  the  scientific 
point  of  view.  Definitions  are  made  and  discussed,  and 
theories  elaborated. 

The  writer  who,  perhaps,  more  than  any  other  ex- 
presses the  advance  of  Greek  thought  in  this  respect  is 
Aristotle.  Some  of  his  theories  are  important  as  fur- 
nishing the  basis  of  many  speculations,  and  even  of  ac- 
tive policy  during  the  Middle  Ages. 

Many  of  the  treatises  of  medieval  writers  are  per- 
meated with  Aristotelian  views.  St.  Thomas  Aquinas 
incorporated  many  of  Aristotle's  views  regarding  the 
conditions  justifying  the  demand  for  interest  and  regard- 
ing the  lawfulness  of  trade.  While,  for  example,  Aris- 
totle praises  trade  per  se,  he  condemns  it  in  the  real  city, 
because  it  leads  to  sordid  avarice.  So,  also,  St.  Thomas 
declares  that  trade  is  only  lawful  when  a  merchant  seeks 
moderate  gain  for  his  household. 

Mere  speculation,  however,  could  have  little  effect, 
whether  for  good  or  bad,  at  a  time  when  the  civilized 
world  was  torn  asunder  by  constant  discord  and  strife. 


Influence  of  the  Economic  Element  49 

It  is  not  till  the  time  of  the  supremacy  of  Macedonia, 
and  of  the  conquests  of  Alexander  the  Great,  that  his- 
tory pursues  once  again  its  broad  course  of  development, 
and  that  the  economic  factor  becomes  a  real  and  impor- 
tant factor  in  that  development. 

After  the  completion  of  his  conquests,  Alexander's 
desire  was  to  consolidate  what  he  had  gained  by  social 
and  economic  means.  He  strove  to  amalgamate  the 
Greeks  and  Orientals  by  intermarriage.  He  built  large 
cities,  which  were  intended  to  become  great  centers  of 
commerce.  He  made  and  improved  the  roads  which  con- 
nected all  the  important  towns.  He  also  increased  the 
circulation  of  wealth  and  furthered  the  interests  of  com- 
merce by  his  wide  distribution  of  the  hoards  of  gold  that 
were  found  in  the  Persian  treasuries.  This  had  the 
effect,  not  only  of  making  capital  more  accessible,  but 
also  of  substituting  gold  for  the  baser  metals  as 
a  medium  of  exchange.  Such  a  reform  in  the  currency 
was  highly  desirable,  owing  to  the  greater  value  of  gold, 
and  the  ease  with  which  it  was  carried  about. 

He  also  bestowed  great  attention  upon  the  improve- 
ment of  agriculture,  as  is  shown  by  his  attempts  to  irri- 
gate the  fertile  plains  of  Babylon.  And,  what  would 
be  little  expected  from  a  military  leader,  he  endeavored 
to  put  together  an  efficient  navy,  and  to  circumnavigate 
the  Arabian  peninsula. 

Had  he  lived  longer,  success  might  have  crowned  all 
his  efforts.  As  it  was,  the  course  of  subsequent  history 
showed  that  the  most  lasting  part  of  his  achievements 
was  his  efforts  on  social  and  economic  lines.  Many  of 
the  cities  that  he  built  became,  like  Alexandria  of  to-day, 
great  emporiums  of  commerce  and  trade.  The  blend- 
ing together  of  the  Greek  and  Oriental  element  is  still 
conspicuous  even  in  our  own  times.  And  the  whole  of 


50  Greek  and  Roman  Period 

the  trade  between  the  East  and  the  West  received  a 
remarkable  impetus,  both  during  and  after  his  time. 

After  the  death  of  Alexander,  however,  we  are  pass- 
ing over  the  last  period  of  Greek  economic  history — 
the  period  marked  by  the  domination  of  Rome.  Dur- 
ing this  period  the  history  of  Greece  proper  presents 
very  little  that  is  attractive.  We  discern,  still  more 
clearly  than  ever,  the  utter  incapacity  of  Greece  to  man- 
age her  own  affairs.  Only  one  little  State,  compact  and 
solid,  seems  still  to  survive  as  heir  to  all  the  culture  and 
wealth  of  some  of  the  City-States  of  ancient  Greece. 
This  is  the  Island  of  Rhodes. 

Even  by  nature  this  island  was  signally  favored.  The 
air  is  mild  and  balmy;  perennial  sunshine  is  said  to  pre- 
vail, and  the  soil  is  remarkable  for  its  exuberant  activ- 
ity. Also  the  abundance  of  such  natural  products  as 
glue,  pitch,  honey,  and  saffron  ointment  enabled  her  to 
carry  on  an  extensive  trade  with  both  Greeks  and 
Romans,  while  her  position  made  her  the  center  of  the 
trade  between  Europe  and  the  Levant. 

Her  political  power  acquired  a  corresponding  im- 
portance. By  357  B.C.,  she  had  shaken  off  the  fetters  of 
her  subjection  to  Athens.  Though  for  a  time  she  was 
subdued  by  Alexander  the  Great,  she  became  free  again 
after  his  death.  Then  after  successfully  repulsing  the 
sieges  of  the  powerful  Demetrius  of  Macedonia,  she 
showed  herself  in  her  true  light  as  a  great  and  very 
formidable  power.  The  Romans  themselves  were  glad 
to  form  an  alliance  with  her  against  Attalus,  King  of 
Pergamus,  and  on  another  occasion  it  was  chiefly  by 
means  of  the  Rhodian  fleet  that  the  Romans  defeated 
Antiochus  III,  King  of  Syria. 

Unfortunately,  however,  the  Rhodians,  in  168  B.C., 
abandoned  their  alliance  with  Rome,  and  joined  the  fall- 


Influence  of  the  Economic  Element  51 

ing  cause  of  Perseus  of  Macedonia.  They,  therefore, 
shared  in  the  defeat  of  that  prince  and  were  subjected 
to  the  severest  penalties.  The  naval  supremacy  that 
Rhodes  had  enjoyed  in  the  ^Egean  Sea  was  completely 
taken  away  from  her  and  her  trade  crippled  by  the 
declaration  of  Delos  as  a  free  port.  Thus  Delos,  not 
Rhodes,  now  became  the  center  of  the  Levant  trade, 
and  the  result  was  the  commercial  and  political  extinc- 
tion of  the  last  prosperous  and  powerful  Greek  City- 
State. 


CHAPTER  III 

ECONOMIC   CONDITION  OF  ANCIENT   ROME 

THE  Romans,  like  the  Greeks,  had  in  the  early  stages 
of  their  political  existence  no  conception  of  political 
economy  as  a  science.  Economic  problems  of  a  very 
urgent  nature  did,  indeed,  present  themselves  to  Roman 
statesmen  even  from  the  earliest  times,  but  their  man- 
ner of  dealing  with  such  problems  was  essentially  prac- 
tical and  not  theoretical.  Nor  was  there  any  time  for 
speculation  and  cool,  scientific  inquiry.  Hence,  while 
many  attempts  were  made  to  handle  economic  subjects 
in  a  practical  manner,  we  come  across  very  few  discus- 
sions and  theories. 

But  after  the  middle  period  of  Roman  history,  in 
fact  almost  when  Rome  was  in  its  decline,  various 
Roman  philosophers  and  jurists  began  to  discuss  certain 
economic  theories.  Nor  was  this  remarkable,  when  we 
consider  that  the  masterpieces  of  Greek  literature  were 
beginning  to  find  their  way  into  Roman  society,  and 
especially  that  the  elaborate  system  of  Roman  law, 
strong  even  on  its  commercial  side,  demanded  many 
interpretations. 

Most  of  these  theories  are  remarkable  for  their  pes- 
simistic character.  Occasionally  they  resemble  the 
lamentations  of  some  of  our  own  modern  writers. 
They  complain  generally  of  the  neglect  of  agriculture 
and  the  decay  of  industry.  Chief  among  the  writers  of 
this  sort  were  Cicero  and  Seneca,  while  Virgil,  in  later 
times,  echoes  the  same  strain  more  melodiously  and  more 
sweetly,  when  he  sings  in  the  Georgics  of  the  oppressive- 
ness of  congested  city  life,  with  its  vain  pleasures  and 


Economic  Condition  of  Ancient  Rome  53 

empty  formalities,  as  contrasted  with  the  innocent  and 
healthful  delights  of  country  life. 

Such  writings  showed  a  just  observation  of  the  eco- 
nomic evils  of  the  times,  but  they  did  not  attempt  to 
point  out  any  radical  remedy.  Even  when  other  writers, 
like  Cato  and  Varro,  busy  themselves  with  the  agricul- 
tural industry,  they  concern  themselves  almost  exclu- 
sively with  its  practical  details.  There  is  no  broad  gen- 
eralization, no  formal  enunciation  of  principles.  If 
they  do  rise  above  the  consideration  of  the  mere  con- 
crete, it  is  only  to  utter  platitudes  regarding  the  bene- 
fits of  farming  life  in  fostering  the  natural  virtues  and 
begetting  honest  citizens. 

There  were,  however,  certain  thinkers  of  a  different 
type  who  did  seriously  discuss  some  very  important  eco- 
nomic theories.  Foremost  among  these  was  Columella. 
He  was  born  in  Spain,  about  40  A.D.,  and  wrote  a  trea- 
tise, De  Re  Rustica,  in  twelve  books.  One  of  the  inter- 
esting questions  that  he  raises  is  whether  large  or  small 
farming  is  to  be  preferred.  He  decides  in  favor  of  the 
small  farming.  Perhaps  his  decision  was  partly  in- 
fluenced by  the  fact  that  in  Italy  there  were  so  many 
huge  estates  badly  managed,  and  worked  by  slaves  to 
the  general  detriment  of  the  free  laborer. 

Also  among  the  jurists,  as  we  have  already  said,  were 
raised  certain  economic  discussions.  These  afford  most 
interesting  glimpses  of  the  views  entertained  by  the 
Romans  regarding  the  absolute  and  relative  value  of 
money,  the  advantages  and  disadvantages  of  slave  labor, 
and  the  way  in  which  governments  might  advanta- 
geously interfere  in  such  matters  as  encouragement  of 
population,  and  curtailment  of  public  and  private  ex- 
travagance. 

In  one  respect  the  Roman  jurists  seem  to  have  held 


54  Greek  and  Roman  Period 

quite  a  different  opinion  from  the  Greek  writers,  and  this 
was  their  view  regarding  interest  on  money  loans.  Al- 
ready in  45 1  B.C.,  the  rate  of  interest  had  been  carefully 
kept  in  check  by  the  Twelve  Tables.  Not  satisfied  with 
this,  the  Romans  afterwards  entirely  prohibited  all  lend- 
ing on  interest.  Possibly  this  antagonistic  attitude  had 
no  small  share  in  the  discussion,  raised  during  the  Mid- 
dle Ages,  on  the  lawfulness  of  lending  money  on  inter- 
est. And  this  seems  all  the  more  likely,  when  we  con- 
sider that  the  provisions  of  Roman  law,  and  the  opin- 
ions of  Roman  jurists,  formed  a  considerable  part  of 
the  European  code. 

The  debt,  however,  that  modern  political  economy 
owes  to  ancient  Rome  is  not  very  great,  at  least  from  the 
theoretic  point  of  view.  There  were  very  few  princi- 
ples and  theories  elaborated,  and  these  were  not  put  to- 
gether so  as  to  form  a  science.  It  is  rather  from  the  ac- 
tive and  concrete  side  that  Roman  economics  influenced 
posterity,  and  as  we  shall  soon  see,  many  of  our  most 
important  commercial  and  financial  institutions  find 
their  precedent  in  Roman  times. 

We  shall  now  give  a  brief  survey  of  the  economic 
condition  of  Rome,  considering,  first,  its  production  of 
wealth,  and  then  its  distribution. 


ROMAN  PRODUCTION  OF  WEALTH 

The  rich  fertility  of  Italian  soil  has  been  much  spoken" 
of  by  Italian  writers,  both  in  prose  and  verse.  Diony- 
sius  says  that  it  compares  very  favorably  with  all  other 
countries.  According  to  him,  the  country  is  so  capable 
of  supplying  all  the  necessities  of  life  that  it  is  scarcely 
at  all  dependent  upon  other  countries.  He  speaks  of 


Economic  Condition  of  Ancient  Rome          55 

the  luxuriant  grain-fields  of  the  Campania,  of  the  Mes- 
sapian  and  Sabine  olive  lands,  of  the  rich  vineyards 
called  the  Tuscan,  Albanian,  and  Falernian.  Nor  does 
he  omit  to  speak  of  the  great  pasture  lands,  of  the  ex- 
tensive forests,  whose  wood  is  so  excellent  for  building 
purposes.  His  catalogue  of  praises  also  finds  room  to 
mention  the  warm  springs,  so  delightful  for  bathing, 
and  so  efficient  in  chronic  diseases,  the  many  kinds 
of  metals  that  are  under  the  soil,  and  finally  the  de- 
lightful temperature  of  the  air. 

Much  of  this  is,  no  doubt,  true,  but  travelers  who  are 
practically  acquainted  with  Italy  well  know  that  some 
distinction  will  have  to  be  made.  A  great  difference 
exists  between  Northern  and  Southern  Italy.  In  the 
northern  parts  of  Italy  the  climate  more  resembles  that 
of  England  and  Scotland,  except  that  it  is  very  much 
drier.  It  is  only  in  the  Italian  lake  district  that  the 
orange  and  lemon  are  found,  and  even  then  only  in  shel- 
tered places. 

It  is  in  the  middle  and  southern  parts  of  Italy,  and 
especially  in  Sicily,  that  sub-tropical  vegetation  is  to  be 
found.  These  districts  are  able  to  produce  corn,  rice, 
oil,  silk,  and  all  sorts  of  fruits,  while  in  striking  con- 
trast with  the  severe  winters  of  the  northern  region  are 
perennial  sunshine,  and,  during  the  summer,  severe 
droughts. 

Altogether,  Italy,  even  more  than  Greece,  is  an  agri- 
cultural country,  and,  in  fact,  from  time  immemorial, 
agriculture  has  been  one  of  the  two  chief  occupations 
of  the  Romans,  the  other  being  that  of  war. 

It  is  no  small  wonder  that  the  greatest  writers  of 
ancient  Rome  are  more  in  favor  of  agriculture  than  of 
the  other  industries.  Cicero,  for  example,  says  that 
there  is  nothing  better,  more  pleasing,  more  delightful, 


56  Greek  and  Roman  Period 

and  more  befitting  a  well-bred  gentleman,  than  the  pur- 
suit of  agriculture.  The  same  writer,  however,  showers 
disdain  on  mechanical  occupations,  and  even  hurls  his 
denunciations  against  butchers,  cooks,  and  others  of 
kindred  occupations,  to  whom  he  himself,  however, 
must  have  been  often  indebted  for  many  an  hour  of 
pleasure. 

Partly,  therefore,  owing  to  natural  circumstances, 
partly  owing  to  prejudice,  agriculture  was  the  absorbing 
industry  of  the  time.  Other  industries  there  were,  but 
they  occupied  a  position  comparatively  unimportant. 

Naturally  such  industries  were  chiefly  connected  with 
the  actual  necessaries  of  life.  From  the  earliest  days, 
there  was  need  of  clothing,  and  since  large  numbers  of 
sheep  were  on  the  spot  it  was  inevitable  that  some  kind 
of  woolen  industry  should  be  established.  But  this  was 
carried  on  only  in  the  private  family,  generally  by  the 
slaves  under  the  supervision  of  their  mistress.  Only  iA 
later  imperial  times  was  the  wool  spun  in  the  public 
factories.  The  great  Augustus  himself  wore  woolen 
clothing  made  in  his  own  family. 

Later  on,  other  material  for  clothing  was  introduced. 
We  hear  of  linen,  cotton,  and  even  silk  being  used  for 
articles  of  apparel,  but,  of  these  industries,  the  home  fac- 
tories were,  for  a  long  time,  exceedingly  few.  Nor  was 
there  given  a  stimulus  of  any  kind  to  the  starting  and 
development  of  such  industries,  the  reason  of  this  be- 
ing that  goods  could  be  so  easily  imported  from  abroad, 
even  from  such  far-off  countries  as  India  and  China. 

Besides  the  clothing  industries,  there  were  also  others, 
which,  from  their  very  nature,  were  more  or  less  indis- 
pensable. These  were,  for  example,  bakers,  fullers, 
cobblers,  carpenters,  goldsmiths,  coppersmiths,  dyers, 
and  even  flute-blowers,  for  flute  blowing  was  considered 


Economic  Condition  of  /Indent  Rome          57 

in  those  days  a  branch  of  industry.  All  these  formed 
themselves  into  guilds,  called  by  the  Romans  collegia. 
These  associations  were,  however,  very  different  from 
our  modern  guilds.  They  were  not  exclusive,  anybody 
outside  being  allowed  to  practise  the  same  trade. 
What  seems  to  have  constituted  the  main  object  of  their 
existence  was  for  the  purpose  of  handing  down  the  tech- 
nique of  the  trade  from  one  generation  to  another. 
Most  of  them  had  their  own  rules  and  forms  of  worship. 
In  later  times  the  guilds  had  to  receive  a  license,  and 
only  those  guilds  could  be  licensed  that  could  prove 
extreme  antiquity. 

One  industry,  in  particular,  deserves  mention,  partly 
on  account  of  its  contribution  to  the  magnificence  of  the 
city  of  Rome,  and  partly  on  account  of  the  great  num- 
bers of  workmen  to  whom  it  must  have  been  the  means 
of  furnishing  employment.  This  was  the  building  in- 
dustry. Even  the  ruins  of  Rome  to-day  show  the  size 
and  greatness  of  some  of  the  public  buildings  of  an- 
cient Rome,  such  buildings  as  those  that  were  in  the 
Roman  Forum,  and  the  various  temples  and  baths  whose 
ruins  now  are  scattered  throughout  the  city.  In 
addition  to  these  must  also  be  borne  in  mind  the  splendid 
villas  of  later  Rome,  and  the  great  public  works  that 
were  set  on  foot  by  the  imperial  rulers.  Indeed  it  was 
Caesar's  avowed  object  to  furnish  by  these  means  work 
for  the  unemployed,  and  this  policy  was  continued  under 
later  emperors.  One  example  of  their  care  in  this  re- 
gard was  the  harbor  which  was  built  by  Claudius  near 
Ostia.  This  harbor  was  contained  within  two  jetties 
stretching  far  out  into  the  sea  and  having  a  lighthouse 
at  the  extremity.  Another  undertaking  of  the  same  em- 
peror was  the  construction  of  a  three-mile  tunnel  to  carry 
away  the  overflow  of  the  Fucine  lake. 


58  Greek  and  Roman  Period 

Other  great  undertakings  of  a  similar  nature  were 
the  restoration  of  the  Capitol  under  Vespasian,  the 
building  of  the  Coliseum  under  the  same  emperor,  while 
the  new  Forum  in  Rome,  the  new  port  near  Ostia,  and 
the  Trajan  aqueduct  were  all  colossal  undertakings. 

All  these  building  operations  must  have  constituted 
a  considerable  and  never-failing  industry,  for  although 
many  of  the  employed  were  slaves,  yet  many  freemen 
must  also  have  thereby  found  work. 

Such,  then,  were  the  main  industries  of  ancient  Rome. 
As  we  have  seen,  she  had  nothing  except  the  building 
industry  to  rival  the  extent  and  development  of  the  in- 
dustries of  ancient  Greece.  For  most  of  her  goods, 
Rome  depended  mainly  upon  importation.  She  re- 
ceived everything,  and  gave  nothing  back.  So  profuse, 
indeed,  were  the  importations  of  goods,  even  from  such 
countries  as  India  and  Arabia,  that  the  inhabitants  of 
these  countries  had  to  ask  back  some  of  the  exports  that 
they  had  so  lavishly  and  so  expectantly  sent  over. 

Agriculture,  then,  was  the  main  industry  of  ancient 
Rome.  From  the  beginning  to  the  end,  it  was  con- 
sidered to  be  the  cause  of  the  peculiar  virtues  of  the 
Roman  character  and,  more  than  any  other  industry,  it 
was  blended  with  the  political  fortunes  of  the  Romans. 

It  will  not  be  out  of  place,  therefore,  if  we  give  some 
details  regarding  some  of  the  most  important  sections  of 
this  industry. 

First  in  importance  comes  the  cultivation  of  grain. 
In  very  early  times  the  grain  was  pounded  in  mortars, 
and,  after  being  mixed  with  water,  must  have  rather 
resembled  our  porridge.  Soon,  however,  an  improve- 
ment took  place.  The  pounding  was  done,  not  in  mor- 
tars, but  in  public  mills.  In  these  mills  the  grain  was 
poured  into  a  large  funnel,  and,  after  reaching  the  bot- 


Economic  Condition  of  Ancient  Rome          59 

torn,  was  well  ground  by  a  powerful  millstone,  which 
was  set  in  motion  by  the  labor  of  horses  or  slaves. 

The  next  step  was  to  improve  the  preparation  of  the 
grain  when  thus  crushed.  This  was  done  by  baking  and 
the  result  was  the  real  equivalent  of  our  bread.  As  yet, 
however,  there  were  no  loaves,  only  thin  cakes.  More- 
over, all  the  baking  was  done  at  first  in  private  families; 
not  till  about  the  end  of  the  second  century  before  Christ 
were  there  public  bakers,  who,  like  the  members  of  the 
other  industries,  formed  themselves  into  guilds. 

The  bread  from  these  bakeries  must  have  closely  re- 
sembled in  taste  our  modern  bread.  It  contained  a  little 
salt  and  water  and  was  also  fermented  with  yeast. 

There  was  also  much  the  same  variety  that  we  find  in 
our  modern  baking.  For  there  were  loaves  made  of 
the  best  pure  white  flour,  called  panis  siligneus,  and 
there  were  loaves  made  of  a  coarse  flour,  called  by 
such  names  as  panis  plebeius,  panis  sordidus. 

The  second  branch  of  agricultural  industry  practised 
in  ancient  Rome,  and  which,  even  to-day,  is  conspicu- 
ously flourishing  in  Italy,  was  the  vine.  This,  perhaps 
more  than  any  one  branch  of  industry,  is  spoken  of  by 
Italian  writers,  both  in  prose  and  verse.  Some,  like 
Virgil,  regard  it  from  the  practical  and  industrial  point 
of  view;  others,  like  Horace,  regard  it  rather  on  its 
convivial  and  pleasurable  side.  The  instructions  given 
by  Virgil  in  the  two  Georgics  show  a  most  intimate  ac- 
quaintance with  all  the  details  of  the  cultivation  of  the 
vine,  and,  as  for  variety,  the  taste  of  Horace  must  have 
evidently  been  tickled  by  samples  of  all  the  choicest 
wines,  not  only  from  Italy,  but  from  the  Greek  Isles. 

A  few  words  in  detail  must  be  said  regarding  the 
treatment  of  the  grape  when  arrived  at  maturity.  This 
treatment  differed  from  the  methods  adopted  by  the 


60  Greek  and  Roman  Period 

Greeks  in  being  more  refined  and  in  giving  rise  to 
greater  variety  of  wine. 

First  of  all  there  was  the  juice  that  descended  from 
the  bunches  when  they  were  simply  brought  in  contact 
with  one  another  after  being  gathered.  This  kind  of 
juice  naturally  came  from  the  over-ripe  grapes.  It  was 
carefully  collected  apart  and  was  called  protropium. 

Then  the  grapes  were  subjected  to  the  same  kind  of 
treatment  that  we  read  of  among  the  Greeks ;  the  grape, 
that  is  to  say,  was  trodden  under  the  naked  feet,  pres- 
sure was  applied,  and  the  exuding  juice  was  then  col- 
lected. This  went  by  the  name  of  mustum,  and  is  the 
same  as  our  modern  must.  Nor  did  the  process  of  ex- 
traction end  even  here.  By  means  of  powerful  pres- 
sure the  juice  was  even  extracted  from  the  stalks  and 
husks,  and  made  to  form  a  coarser  kind  of  beverage. 

Only  the  mustum  was  reserved  for  fermentation,  and 
was  carefully  preserved  in  vats  coated  with  pitch.  Then, 
as  now,  the  value  of  a  brand  of  wine  depended  greatly 
upon  its  age.  A  vat  having  on  its  label  the  names  of 
consuls  who  had  held  office  years  before  would  be 
reckoned  in  great  esteem. 

The  olive  was  almost  as  popular  in  Italy  as  it  had 
been  in  Greece.  And  the  ways  of  preparing  it  were 
more  numerous  and  varied.  Sometimes  it  was  sprinkled 
with  salt,  allowed  to  remain  a  few  days,  and  then  dried 
in  the  sun;  at  other  times  the  olive  was  preserved  in 
boiled  must.  Perhaps  the  most  curious  method  was 
that  of  putting  the  olive,  together  with  the  stalks,  into 
an  earthenware  vase,  and  pouring  oil  on  the  top.  In 
this  condition  the  contents  were  allowed  to  remain,  with 
the  result  that  the  flavor  of  the  fresh  fruit  would  last 
for  half  a  year  or  more. 

The  Romans  had  no  butter,  but  they  had  another 


Economic  Condition  of  /Indent  Rome          61 

kind  of  condiment,  of  which  the  olive  formed  an  im- 
portant ingredient.  The  other  ingredients  were  corian- 
der seeds,  cummin,  fennel,  and  mint ;  all  these,  after  be- 
ing mixed  with  oil,  forming  what  the  Romans  called 
epyterum,  a  substitute  for  our  modern  butter. 

The  fruit  of  the  olive,  however,  was  chiefly  valued 
for  the  oil  that  was  obtained  in  considerable  quantities. 
Enormous  quantities  of  the  olive  oil  must  have  been  used 
by  the  Romans.  Not  only  was  it  in  fashion  as  an  article 
of  diet,  but  even  for  such  a  diversity  of  purposes  as  fuel 
for  lamps,  and  for  anointing  the  body,  either  after  bath- 
ing or  before  any  violent  physical  contest,  it  was  in  use 
everywhere. 

Such  were  the  main  branches  of  agriculture,  the  grain, 
the  olive,  and  the  vine.  They  furnished  occupations 
that  were  most  suited  to  the  ancient  simplicity  and 
rugged  character  of  the  Romans,  and  they  were  also  the 
main  sources  of  the  wealth  that  Rome  herself  was  able 
to  produce. 


CHAPTER  IV 

DISTRIBUTION   OF   ROMAN   WEALTH 

WE  HAVE  seen  that  the  greater  part  of  the  natural 
wealth  of  Rome  was  derived  from  the  land  through  the 
industries  of  the  grain,  the  vine,  and  the  olive.  There 
remains  to  be  seen  how  this  land  was  divided,  and  also 
into  whose  hands  flowed  the  spoils  of  Rome's  vast  con- 
quests. 

The  original  territorial  settlement  of  the  Romans  was 
very  small.  It  comprised  only  Rome  itself  and  the 
neighboring  district.  Enterprise  and  good  fortune, 
however,  extended  the  power  of  Rome  by  leaps  and 
bounds.  Latium,  Campania,  Etruria,  Sicily,  Africa, 
Greece,  all  fell  under  her  dominion,  even  during  Re- 
publican times. 

The  land  taken  from  the  enemy  was,  even  from  an 
early  period,  divided  in  the  following  manner:  A  part 
was  reserved  for  the  State,  another  part  for  the  Roman 
colonists,  a  third  part  was  distributed  among  the  poor 
in  small  allotments,  while  yet  another  part  was  rented 
out  to  rich  citizens,  who  paid  a  more  or  less  nominal 
rent. 

The  part  that  was  reserved  to  the  State  generally  con- 
sisted of  mines,  forests,  and  great  pasture  lands.  The 
profits  from  these  were  a  source  of  considerable  revenue 
to  the  State. 

The  land  allotted  to  the  colonists  became  absolutely 
their  private  property.  When  a  colony  was  formed  in 
any  district,  a  law  was  passed  stating  the  amount  of  land 
to  be  given  over,  and  what  burdens  should  be  imposed 
upon  the  colonists.  Anybody  wishing  to  form  part  of 


Distribution  of  Roman  Wealth  63 

the  colony  could  then  hand  in  his  name,  and  when  all 
arrangements  had  been  made,  the  colonists  all  marched 
out  of  Rome  with  great  pomp  and  solemnity. 
Naturally,  these  colonies  were  very  useful  for  extending 
Roman  influence.  Not  only  did  they  diffuse  the  knowl- 
edge of  Roman  usages  and  civilization,  but  they  acted 
as  military  outposts.  Hence  we  find  that  many  of  the 
colonies  were  placed  in  dangerous  and  exposed  districts. 

Another  portion  of  land  was  often  distributed  among 
the  poor  citizens  in  small  allotments.  The  soil  of  such 
lands  was  generally  very  rich  and  did  not  entail  many 
initial  expenses.  Another  advantage  was  that  the  land 
so  distributed  was  absolutely  the  property  of  the  per- 
son to  whom  it  had  been  granted.  As  was  to  be  ex- 
pected, the  poorer  classes  were  always  anxious  that  as 
much  of  the  land  as  possible  should  be  disposed  of  in  this 
way.  But  this  wish  was  not  always  gratified,  and  much 
discontent  resulted. 

We  now  come  to  the  land  that  was  let  out  to  the  rich 
citizens.  Such  land  was  generally  of  the  kind  that  re- 
quired a  considerable  outlay  of  money.  Hence  only 
the  rich  citizens  applied  for  lands  of  this  descrip- 
tion. Moreover,  a  rent  had  to  be  paid  which  varied  in 
value,  but,  on  the  average,  may  be  reckoned  at  one- 
tenth  of  the  produce  of  the  corn  land  and  one-fifth  of  the 
produce  of  the  vine  and  fruit  trees.  In  other  words, 
such  citizens  became  metayer  tenants  of  the  State.  Be- 
sides this  rent,  another  disadvantage  was  that  the  occu- 
pant was  only  a  tenant  at  will  of  the  State.  Any  mo- 
ment he  might  be  dispossessed  of  his  holding. 

The  land  in  the  conquered  provinces  was  subjected  to 
rather  different  treatment.  There,  all  the  land  was  con- 
sidered to  be  the  property  of  the  conquerors.  But  in 
practice  only  a  portion  went  directly  into  the  Roman 


64  Greek  and  Roman  Period 

treasury.  A  great  number  of  private  persons  were  al- 
lowed to  retain  their  possessions  on  condition  of  paying 
a  land  tax.  The  remainder  was  treated  in  various 
ways.  Part  of  it  was  sold  or  rented  out,  the  proceeds 
in  either  case  going  directly  into  the  ararium  or  Roman 
treasury.  Another  portion  was  retained  by  the  govern- 
ing elements  of  the  province  or  by  the  corporations  and 
in  various  ways  was  made  subservient  to  public  utility. 

Trade  and  commerce  soon  found  some  place  in  the 
economic  activity  of  Rome.  Already,  by  the  time  of 
Servius  Tullius,  coined  money  became  the  means  of  ex- 
change. Before  the  use  of  money,  the  standard  of 
wealth  seems  to  have  been  cattle.  Of  this  circumstance 
the  figure  of  an  ox,  stamped  on  the  early  Roman  coin, 
seems  to  be  a  clear  indication,  while  the  later  word 
pecunia  also  points  to  the  same  conclusion. 

As  was  the  case  in  Greece,  the  introduction  of  a  com- 
mon medium  of  exchange  must  have  greatly  facilitated 
commerce,  both  inside  and  outside  of  Rome.  More- 
over, as  Roman  conquests  expanded,  her  markets  be- 
came proportionately  widened.  It  is  true  that  Rome, 
herself,  produced  very  little,  but,  on  the  other  hand,  she 
was  able  to  pay  for  her  imports  by  the  treasure  that 
poured  into  her  coffers  from  foreign  sources. 

The  chief  part  in  the  commercial  activity  of  Italy  was 
taken  by  the  Equites  or  Roman  Knights.  Owing  to  the 
senatorial  Patrician  being  debarred  from  extensive  trade 
transactions,  and  owing  to  the  poverty  of  the  poorer 
classes,  the  Equites  enjoyed  almost  the  entire  monopoly 
of  trade.  All  the  great  business  transactions  were  in 
their  hands,  and  they  were  also  indirectly  aided  by  hav- 
ing the  monopoly  of  the  State  contracts.  It  was  to  them 
that  the  State  farmed  out  the  taxes,  which  means  that 
the  State,  instead  of  collecting  the  taxes,  agreed  to  re- 


Distribution  of  Roman  Wealth  65 

ceive  from  the  Knights  a  certain  sum  of  money,  and  al- 
lowed them  to  collect  and  appropriate  the  taxes  for 
themselves.  Such  an  arrangement  had  its  obvious  con- 
venience for  the  State,  but  the  disadvantages  were  many. 
The  Knights  were  frequently  guilty  of  a  great  deal  of 
dishonesty  and  extortion  and  it  was  owing  to  this  that 
the  term  "Roman  Knight"  afterwards  incurred  so  much 
infamy. 

They  also  had  a  monopoly  of  the  slave  trade.  As 
Rome's  conquests  considerably  increased,  this  became  a 
source  of  unlimited  wealth.  Delos  seems  to  have  been 
one  of  the  chief  marts  of  the  trade.  According  to 
Strabo,  no  fewer  than  ten  thousand  slaves  were  often  re- 
ceived and  transported  in  the  same  day.  From  Pliny 
we  also  learn  that  the  average  rich  man  could  easily 
maintain  a  whole  legion  of  them  on  his  yearly  income. 

The  great  part  of  Rome's  industry  was  dependent 
upon  slaves.  Not  only  were  there  slaves  in  domestic 
households  and  in  the  big  workshops,  but  in  later  times 
the  vast  landed  estates  in  Italy  were  worked  chiefly  by 
slaves.  The  Knights,  therefore,  must  have  enjoyed  a 
very  valuable  monopoly. 

But  there  was,  also,  another  privilege  which  they 
enjoyed,  perhaps  even  more  important.  This  was  the 
monopoly  of  the  banking  system.  From  the  very  earli- 
est days  in  Rome  a  systematic  method  of  keeping  ac- 
counts seems  to  have  prevailed  almost  everywhere.  It 
was  a  custom  for  the  father  of  the  household  to  keep  a 
register  in  which  he  wrote  in  ten  different  columns  the 
receipts  and  expenditures.  These  columns  were  called, 
respectively,  codex  accepli  et  dispensi. 

The  same  custom  was  followed,  but  with  greater  de- 
velopment, by  the  Roman  banker.  Each  banker  had 
what  was  called  the  liber  rationum,  much  resembling  the 


66  Greek  and  Roman  Period 

big  ledgers  of  our  modern  banks.  In  these  books  were 
written  the  names  of  the  banker's  clients — all  drawn  up 
in  alphabetical  order.  Two  divisions  were  then  made, 
one  for  the  balance,  and  the  other  for  the  entries  of  ex- 
penditure. To  quote  the  exact  words  of  Pliny,  "huic 
omnia  expensa,  huic  omnia  feruntur  accepta."  At 
certain  times,  the  banks  drew  up  in  their  books  a  written 
account  of  the  finances  (rationes  redditte)  and  gave  a 
note  to  their  clients  of  their  exact  standing.  Nor  were 
these  transactions  merely  a  matter  of  private  business; 
they  were  all  carried  out  under  the  supervision  of  some 
State  official.  In  Rome,  it  was  the  prefect  of  the  city; 
in  the  provinces,  the  governor.  Often  it  would  happen 
that  there  was  a  balance  or  reliquum,  which  could  be 
paid  over  at  once,  or  reinvested,  according  to  the  will 
of  the  client. 

A  still  more  curious  parallel  between  the  Roman 
banks  and  our  modern  banks  we  find  in  the  check  system. 
Clients  who  kept  a  running  account  were  entitled  to  use 
a  written  mandate,  called  tabulas  annulo  obsignatis,  and 
this  practically  fulfilled  the  same  function  as  the 
modern  check. 

The  Roman  banker  also  fulfilled  another  very  impor- 
tant function  in  the  economic  system.  He  used  to  ad- 
vance money  for  important  enterprises.  He  thus  be- 
came, like  the  modern  banker,  the  means  by  which  capi- 
tal is  at  once  distributed  to  the  parts  where  it  is  most 
needed.  Without  such  a  contrivance  capital  and  labor 
would  be  separated  far  apart,  to  the  great  detriment  of 
each  other. 

Great,  indeed,  must  have  been  the  importance  of  the 
banking  system  in  Roman  times,  and  from  it  we  can 
measure  the  importance  of  the  Knights,  who  monopo- 
lized this  business.  It  is  no  wonder  that  they  had  be- 


Distribution  of  Roman  Wealth  67 

come,  by  Cicero's  time,  one  of  the  most  powerful  bodies 
in  the  State,  upon  whose  action  depended  the  balance  of 
political  power. 

This  power  may  have  been  exerted  wisely  or  unwisely, 
but  there  is  little  doubt  that  the  Equites,  with  their 
command  and  distribution  of  capital,  maintained  the 
trade  and  commerce  of  ancient  Rome.  As  in  our  own 
times  small  retail  traders  depend  indirectly  upon  the  great 
commercial  undertakings,  so,  in  Rome,  the  retail  dealers 
in  the  shops,  and  also  the  petty  huckster,  owed  their 
property,  and  even  existence,  to  the  capital  of  the  Equites. 

FINANCIAL  ADMINISTRATION  OF  THE  ANCIENT  ROMAN 

STATE 

The  revenues  of  the  Roman  State  were  at  first  few 
and  simple.  First,  there  were  the  different  lands  and 
mines  belonging  to  the  State,  and  forming  part  of  its 
domain.  All  the  profits  arising  from  these  went  to  the 
treasury.  Then,  as  time  went  on,  taxes  were  imposed 
upon  the  people.  Some  of  these  taxes  were  direct, 
others  indirect,  the  former  being  levied  on  the  very  peo- 
ple who  were  destined  to  bear  the  burden,  and  the  latter 
being  exacted  from  the  payer  of  the  tax  only  in  an  in- 
direct way.  The  most  lucrative  of  the  Roman  taxes 
were  direct,  and  consisted  of  the  following: 

a.  The  tribute.     This  was  a  tax  imposed  on  all  citi- 
zens.    It  depended  upon  the  amount  of  property  at 
which  each  person  was  assessed.    After  being  introduced 
at  the  reforms  of  Servius  Tullius,  it  remained  in  force 
until  116  B.C.     During  this  year,  owing  to  the  great 
wealth  of  Rome,  it  was  suspended  until  the  beginning  of 
the  reign  of  Augustus. 

b.  The  land  tax  that  was  levied  on  the  owners  of  the 
allotments  of  the  public  land. 


68  Greek  and  Roman  Period 

c.  The  taxes  that  were  laid  upon  the  inhabitants  of 
the  provinces,  who  were  allowed  to  remain  in  possession 
of  their  holdings.     Such  inhabitants  had  to  pay  either 
a  sum  in  proportion  to  the  produce,  and  were  then  called 
stipendarii,  or  to  pay  a  fixed  sum,  and  then  went  by  the 
name  of  vectigales. 

d.  The  general  tribute  that  was  levied  on  each  prov- 
ince as  a  whole.    This,  generally  speaking,  amounted  to 
about  one-tenth  of  the  general  produce,  but  was  collected 
in  different  ways. 

e.  The  tax  of  the  supply  of  corn  that  all  the  prov- 
inces had  to  contribute  for  the  maintenance  of  Rome 
itself. 

/.  The  portoria,  or  customs  duties,  which,  as  trade 
increased,  became  very  considerable. 

Other  taxes  of  later  introduction  might  also  be  men- 
tioned, such  as  the  tax  of  five  per  cent,  levied  on  the 
manumission  of  slaves,  the  tax  of  one  per  cent,  on 
articles  of  sale,  the  tax  of  five  per  cent,  on  all  legacies, 
near  relations  being  exempted,  and,  finally,  the  tax  on 
all  sums  about  which  there  was  a  dispute  in  a  court  of 
justice. 

All  these  taxes  must  have  furnished  a  considerable 
source  of  revenue.  On  the  whole,  however,  they  were 
not  very  burdensome.  In  no  period  of  Roman  history 
do  we  read  of  any  disturbance  being  caused  by  taxation. 
Indeed,  there  would  seem  to  be  almost  a  disproportion 
between  the  profuse  expenditure,  together  with  the  later 
extravagance  of  Rome,  and  the  smallness  of  the  tax- 
ation. Such  disproportion  is  diminished,  however,  when 
one  takes  into  account  the  other  subsidiary  sources  of 
revenue — the  confiscations  and  indemnities  inflicted 
upon  the  conquered  peoples,  the  forfeiture  to  the  State 
of  unclaimed  legacies,  and  of  the  property  of  condemned 


Distribution  of  Roman  Wealth  69 

criminals,  the  appropriation  of  the  ager  publicus  in  the 
provinces,  and,  we  might  even  add,  the  magnificent  be- 
quest that  was  made  to  the  Roman  people  by  Attalus, 
King  of  Pergamus. 

There  now  remains  to  be  considered  the  way  in  which 
all  this  revenue  was  administered. 

In  the  early  times  of  the  kings  of  Rome,  the  king, 
himself,  was  head  of  the  financial  department.  Under 
his  control  was  the  ager  publicus,  out  of  which  were  de- 
frayed public  and  private  expenses,  while  the  treasurers 
were  his  own  ministers.  Some  limit,  indeed,  was  placed 
upon  his  administration  by  the  Senate,  but  the  Senate 
then  had  very  little  real  power. 

Later  on,  during  the  time  of  the  Republic,  there  began 
the  treasury  of  the  Roman  people,  called  the  <zrariumt 
which  was  situated  in  the  Temple  of  Saturn.  The  ulti- 
mate control  of  this  was  supposed  to  be  vested  with  the 
people,  but  the  Senate  formed  the  actual  governing  body 
with  the  consuls  as  administrators,  and  the  questors  as 
paymaster-generals. 

Such  was  the  early  construction  of  the  Republican 
financial  administration.  It  soon  underwent  great  devel- 
opment. A  complete  separation  came  to  be  made  be- 
tween those  who  received,  and  those  who  disbursed  the 
revenues,  and  a  whole  hierarchy  of  officials  was  estab- 
lished, each  with  some  allotted  task  in  the  financial 
administration. 

The  Senate  enjoyed  great  control  over  the  provinces. 
It  was  the  Senate  that  authorized  the  imposition  of  new 
taxes,  and  their  power  was  exclusive.  Although  Livy, 
in  certain  passages,  seems  to  attribute  to  the  consuls  the 
power  of  imposing  the  tribute,  and  to  the  censors 
the  power  of  imposing  indirect  taxes,  yet  the  au- 
thorization of  the  Senate  was  always  presupposed. 


7O  Greek  and  Roman  Period 

On  one  occasion  the  people,  meeting  in  their  centuries, 
voted  a  tax.  This,  however,  afterwards  received  the 
Senate's  approval.  With  the  Senate,  also,  rested  certain 
powers  over  the  expenditure  of  finances,  such  things  as 
the  appropriation  of  funds,  the  alterations  of  the  assess- 
ments, the  examination  of  the  budget,  and  the  allowance 
of  credit  to  public  officials  in  the  performance  of  their 
duty.  During  emergencies  their  power  became  en- 
larged so  that  by  sale  or  otherwise  they  could  dispose,  by 
a  special  decree,  of  the  public  land. 

After  the  Republican  times,  the  emperors  gradually 
usurped  the  place  of  the  Senate  in  financial  administra- 
tion. The  imperial  treasury  took  the  place  of  the 
tfrarium.  It  was  the  emperor  who  eventually  drew  up 
the  yearly  budget  (breviarium).  Whatever  nominal 
power  still  remained  to  the  Senate  was  nullified  by  the 
emperor's  power  to  choose  the  members  of  the  Senate, 
and  the  great  influence  which  he  had  in  guiding  and 
regulating  its  proceedings. 

While,  however,  the  supreme  power  over  the  finances 
changed  hands  from  the  Senate  to  the  emperor,  the  sub- 
ordinate officials,  and  the  practical  working  of  all  the 
details,  remained  very  much  the  same.  During  the 
early  days  of  the  Republic,  the  officials  were  compara- 
tively few  in  number,  but  afterwards,  with  the  growth 
of  finance,  they  considerably  multiplied.  The  following 
were  the  most  important  officials  to  whom  was  con- 
fided the  actual  working  of  the  financial  administration : 

i.  Questors.  These  existed  even  from  the  earliest 
times.  At  first  there  were  two  questors  in  charge  of  the 
treasury,  then,  later  on,  there  were  appointed  one  ques- 
tor  for  each  of  the  two  consuls,  and  another  to  superin- 
tend the  taking  of  the  customs  at  the  harbor  of  Ostia. 
Finally,  when  the  provinces  were  classified  and  organ- 


Distribution  of  Roman  Wealth  71 

ized,  each  governor  had  a  questor  attached  to  his  own 
household. 

The  duties  of  the  questors  were  to  take  charge  of  the 
tfrarium,  or  treasury;  to  receive  all  the  money,  and,  on 
the  authority  of  the  Senate,  to  make  all  the  disburse- 
ments from  the  treasury. 

2.  Mdiles.  The  duties  of  these  officials  were  many 
and  varied:  to  superintend  the  supply  of  provisions;  to 
arrange  the  public  games;  to  inspect  the  weights  and 
measures ;  to  inquire  into  the  condition  of  baths,  taverns, 
and  eating  houses ;  to  prosecute  those  who  had  more  than 
their  share  of  the  public  land,  and  who  allowed  more 
than  the  legal  number  of  cattle  to  graze  in  the  public 
pastures — all  these  duties  pertained  to  the  jurisdiction 
of  the  adiles.    It  was  also  owing  to  the  activity  of  the 
adiles  that  trade  and  commerce  were  carried  on  for  the 
benefit  of  the  ordinary  citizen.     Besides  inspecting  the 
weights  and  measures,  the  adiles  also  looked  after  the 
markets,  and  prosecuted  those  who  demanded  more  than 
the  legal  rate  of  interest,  as  well  as  those  who  hoarded 
their  stock  in  order  to  raise  arbitrarily  the  price  of 
goods. 

3.  Censors.    These  officials  made  out  the  register  of 
Roman  citizens,  and  assessed  the  property  of  each  one 
with  a  view  to  the  imposition  of  the  corresponding 
tribute  or  property  tax.     It  was  also  the  censors  who 
farmed  out  the  taxes,  and  gave  out  important  contracts. 

The  administration  of  Roman  finances  was,  generally 
speaking,  highly  beneficial.  In  spite  of  some  mistakes 
and  abuses,  it  led  to  the  public  and  private  prosperity 
of  Rome.  The  erection  of  magnificent  public  buildings, 
even  during  Republican  times,  the  construction  of  good 
military  roads,  the  successful  completion  of  many  serious 
wars,  are,  in  themselves,  ample  evidence  of  the  efficient 


72  Greek  and  Roman  Period 

administration  of  Roman  finances.  In  imperial  times, 
we  find  that  the  financial  administration  contributed 
even  more  widely  to  the  general  prosperity  of  the  com- 
munity. Under  Augustus  the  old-fashioned  system  of 
farming  out  taxes  had  been  displaced  in  favor  of  the 
collection  of  the  taxes  by  imperial  officers.  The  appoint- 
ment of  a  Prafectus  Annona,  in  order  to  keep  the 
Roman  market  supplied  with  cheap  corn,  and  the  insti- 
tution of  public  servants  to  maintain  the  aqueducts  and 
water  pipes  in  good  repair,  and  to  keep  down  conflagra- 
tions, were  of  great  benefit  to  the  city  of  Rome.  Nor 
were  the  means  of  communication  between  Rome  and 
the  other  cities  neglected.  Under  a  class  of  officials 
called  the  curatores  viarum,  the  roads  were  kept  in  con- 
stant repair.  Even  as  early  as  the  reign  of  Augustus, 
there  was  established  a  postage  system,  which  consisted 
of  relays  of  vehicles  along  the  different  roads.  At  first, 
the  post  was  only  intended  for  imperial  messengers,  but, 
under  the  Emperors  Nero  and  Hadrian,  it  was  extended 
and  improved. 

Another  interesting  and  important  feature  was  the 
care  taken  by  the  Roman  government  in  providing  for 
the  poor.  This  was  done  in  the  first  place  by  the  corn 
laws  of  the  Gracchi.  By  this  law  all  the  citizens  of 
Rome  were  entitled  every  month  to  a  certain  measure  of 
corn  below  the  market  price.  A  great  deal  has  been  said 
in  condemnation  of  such  a  system,  which  eventually  had 
the  fatal  effect  of  pauperizing  the  people.  It  must  be 
remembered,  however,  that  precisely  the  same  plan  was 
adopted  in  England  during  the  Stuart  period,  and  with 
signal  success.  What  made  such  evil  effects  apparent  in 
Rome  was  that  no  distinction  was  made  between  genuine 
and  fictitious  cases.  Such  a  lamentable  oversight,  how- 
ever, was  remedied  by  Julius  Caesar,  who  appointed  cer- 


Distribution  of  Roman  Wealth  73 

tain  inspectors  to  investigate  the  merits  of  the  applicants, 
the  result  being  that  the  number  shrank  from  three  hun- 
dred and  twenty  thousand  to  one  hundred  and  fifty 
thousand. 

Another  way  was  that  of  providing  work  for  the 
unemployed.  In  this,  also,  Julius  Csesar  was  conspicuous 
for  his  practical  sagacity  and  energy.  The  widening  of 
the  streets  of  Rome,  the  building  of  the  Basilica  Julia, 
the  site  of  which  cost  four  million  dollars,  the  erection  of 
the  first  public  library,  the  draining  of  the  Pontine 
marshes — all  these  works  were  undertaken  not  only  for 
the  sake  of  their  intrinsic  utility,  but  also  for  the  sake  of 
the  unemployed.  And,  later,  Roman  emperors  still  fol- 
lowed the  same  policy  by  the  repairing  of  roads  and 
building  of  costly  places  of  amusement. 

Yet  another  way  of  providing  for  the  poor  was  that 
of  lending  money  without  interest.  Already  in  Caesar's 
time,  legislation  had  been  made  regarding  the  rate  of 
interest  on  borrowed  money.  In  the  reign  of  Tiberius, 
no  fewer  than  one  hundred  million  sesterces  were  floated 
on  a  public  loan.  Any  debtor  might  borrow  from  this 
fund  for  three  years  without  interest,  on  giving  to  the 
State  security  for  double  that  amount. 

A  fourth  means  was  emigration  and  colonization. 
This  was  thought  of  even  as  early  as  the  days  of  the 
Gracchi,  but  Julius  Caesar  gave  the  idea  definite  and 
tangible  shape.  The  colonies  of  Corinth  and  Carthage 
were  both  his  creations,  and  perhaps  still  more  practical 
was  his  plan  of  relieving  the  congestion  of  the  city  by 
removing  whole  groups  of  unemployed  from  thence  into 
the  country. 

Finally,  there  was  the  education  of  poor  children. 
Education  in  Rome  was  general,  though  not  compul- 
sory. It  was  carried  on  in  two  sets  of  schools,  the 


74  Greek  and  Roman  Period 

advanced  and  the  elementary.  In  the  elementary  schools 
the  cost  of  attendance  was  very  low,  not  more  than  four 
dollars  a  year.  Yet,  in  addition  to  this,  a  special  pro- 
vision was  made  in  imperial  times  for  the  education  of 
children  in  Northern  Italy. 

Quite  enough  has  been  said  to  show  the  activity  and 
the  beneficent  character  of  Roman  financial  administra- 
tion in  Republican  and  especially  in  imperial  times.  Ac- 
cording to  abundant  evidence,  the  vast  revenues  of 
Rome  were  administered  wisely  and  well.  Trade  and 
commerce  were  promoted  and  the  tendency  of  financial 
legislation  was  to  check  fraud,  to  promote  all  branches 
of  industry,  and  to  benefit  all  classes  of  society. 

We  have  now  to  consider  the  effect  of  the  economic 
condition  of  Rome  on  her  political  history.  In  doing 
so  we  might  conveniently  pass  in  review  the  following 
important  periods  or  crises:  (a)  the  claims  of  the 
Plebeians,  (b)  the  rise  of  the  capitalists  and  the  re- 
forms of  the  Gracchi,  (c)  the  Catilinarian  Conspiracy, 
and  the  advent  of  Julius  Caesar. 


CHAPTER  V 

INFLUENCE    OF   ECONOMICS  ON    ROMAN  HISTORY 

EVEN  from  the  earliest  times,  there  had  been  in  Rome 
a  class  of  people  called  clients.  These  were  not  really 
Roman  citizens,  since  they  had  not  the  full  privileges  of 
such,  being  unable  to  vote  at  the  assembly  of  the  curiata, 
or  to  hold  magisterial  office.  They  lived  with  the 
families  of  the  Roman  citizens,  and  the  fathers  of  these 
families  stood  to  them  in  the  position  of  patron.  Be- 
tween the  clients  and  the  patron  to  whom  they  belonged 
were  close  and  intimate  relations.  The  patron  looked 
after  his  client's  interests,  especially  in  money  matters 
and  in  making  contracts,  and  also  defended  his  client  in 
the  courts  of  justice.  The  client,  on  his  part,  was 
liable  to  such  burdens  as  helping  to  pay  the  dowry  of  his 
patron's  daughter,  and  to  defray  the  ransom,  if  his 
patron  or  his  patron's  children  were  taken  prisoners. 
He  also  had  to  share  in  certain  other  expenses  of  his 
patron,  such  as  those  entailed  by  the  holding  of  offices 
having  connection  with  the  magistracy  and  the  priest- 
hood. 

After  a  time,  these  clients  became  freed  from  any 
connection  with  their  patron.  This  generally  happened 
by  the  extinction  of  the  patron's  family.  In  such  cases 
the  position  of  the  clients  was  most  peculiar.  Being 
already  part  of  the  State,  they  could  not  be  turned  out 
of  Rome,  yet,  on  the  other  hand,  they  had  no  legal 
position  in  the  State,  no  organized  religion  of  their  own, 
and,  at  the  same  time,  they  were  utterly  unacquainted 
with  the  procedure  of  Roman  law,  under  whose  juris- 
diction they  still  remained. 


j6  Greek  and  Roman  Period 

Such  clients  formed  a  distinct  party  by  themselves  and 
went  by  the  name  of  Plebeians. 

Soon  the  ranks  of  the  Plebeians  were  augmented  from 
other  sources.  During  the  reign  of  Tullius  Hostilius  a 
number  of  Latins  were  forcibly  transplanted  to  Rome, 
while  others,  again,  came  to  Rome  of  their  own  accord. 
All  these,  added  to  the  freed  clients,  swelled  consider- 
ably the  number  of  the  Plebeians. 

Before  long  their  number  made  it  desirable  that  they 
should  contribute  their  share  toward  the  burdens  of  the 
State,  and  Servius  Tullius,  by  his  celebrated  reforms, 
raised  their  status  to  the  extent  of  incorporating  them 
in  the  army,  and  enrolling  them  in  the  ranks  of  citizens 
liable  to  pay  duty. 

These  things,  however,  were  duties  rather  than  privi- 
leges. They  were  still  not  fully  citizens.  They  were 
excluded  from  all  share  in  the  State  religion ;  they  could 
not  take  the  auspices,  or  perform  the  other  sacred  rites, 
which  accompanied  every  important  act  of  State;  they 
could  not  perform  the  rite  of  marriage  in  a  proper  way 
and  could,  therefore,  marry  no  Patrician.  Even  from 
the  protection  of  the  law  they  were  almost  completely 
debarred.  The  Plebeian  might  accumulate  wealth,  it  is 
true,  but,  if  he  entered  into  dispute  with  a  Patrician 
neighbor,  the  dispute  would  have  to  be  decided  in  a 
Patrician  court  before  Patrician  magistrates,  while  the 
decision  would  be  determined  by  a  law  of  the  terms  of 
which  he  was  absolutely  ignorant. 

Such  was  the  condition  of  the  Plebeian  class.  No 
matter  whether  the  Plebeians  had  previously-been  clients, 
or  whether  they  were  strangers  from  another  city,  they 
all  suffered  from  the  same  grievous  disability.  Not  all 
the  Plebeians,  however,  suffered  in  the  same  way.  There 
were  rich  Plebeians,  and  there  were  poor  Plebeians. 


Influence  of  Economics  on  Roman  History       77 

Those  who  were  rich  naturally  pined  and  grasped  for 
more  political  power;  those  who  were  poor  thought 
only  of  procuring  the  necessities  of  life. 

It  is  precisely  here  that  the  economic  element  inter- 
vened. It  was  the  want  of  wealth  that  made  the  lower 
classes  of  the  Plebeians  discontented  and  turbulent,  and 
that  gave  such  fierce  energy  to  the  bitter  strife  between 
the  Plebeians  and  the  Patricians. 

This  economic  element  must  be  analyzed. 

A  careful  examination  will  show  that  the  cause  of  the 
misery  of  the  Plebeians  was  twofold.  First  of  all,  their 
circumstances  prevented  them  from  coming  into  touch 
with  capital,  upon  whose  assistance  labor  absolutely 
depends. 

By  capital  is  meant,  not  merely  money,  but  all  the 
appliances  that  are  necessary  for  a  continuance  of  labor, 
such  as  food,  lodging,  implements  of  trade.  It  is  true 
that  many  of  the  small  Plebeians  had  little  farms  of 
their  own,  but  the  severe  and  constant  wars  in  which 
Rome  was  engaged  prevented  them  from  engaging  in 
rural  occupations.  Ever  since  the  reforms  of  Servius 
Tullius  that  had  made  them  a  part  of  the  Roman  army, 
they  had  been  continually  called  upon  to  fight  the  battles 
of  their  country.  The  results,  as  far  as  the  individual 
himself  was  concerned,  were  often  disastrous.  After  the 
battles  were  over,  he  would  return  to  his  farm  only  to 
find  it  deserted  and  neglected,  and  even  in  a  state  of  ruin. 
If,  indeed,  he  had  been  allowed  to  share  with  the 
Patricians  in  the  spoils  of  victory,  then  there  would  have 
been  some  little  capital  to  enable  him  at  least  to  begin 
work.  But,  unfortunately,  this  was  not  so.  He  too 
often  returned  in  a  penniless  condition,  and  was  desper- 
ately driven  in  every  direction  to  seek  for  capital. 

His  only  resource  was  to  borrow,   and  borrowing, 


78  Greek  and  Roman  Period 

especiallyin  the  early  daysof  Roman  history, spelled  ruin. 
Until  the  Twelve  Tables  of  the  law  were  promulgated 
no  limit  had  been  placed  on  the  rate  of  interest,  and  so 
unscrupulous  were  the  Patrician  money  lenders  that 
often  the  debt  would  multiply  itself  threefold  in  the 
course  of  two  or  three  years.  Solvency  became  impos- 
sible and  the  result  was  that  the  security  or  pledge  had 
to  be  forfeited.  In  the  great  majority  of  cases,  the 
pledge  was  the  debtor's  own  body,  in  which  case  the 
debtor  became  the  absolute  property  of  the  creditor.  It 
is  true  that  slavery  was  not  the  direct  consequence  of 
punishment  of  insolvency,  but  that  the  debtor,  when  he 
borrowed,  went  through  a  form  of  sale  by  which  he  sold 
his  body  to  the  creditor,  who  agreed  to  abide  by  his  share 
of  the  contract  until  the  money  was  paid  back.  But  the 
distinction  was  purely  legal.  In  any  case  the  debtor's 
only  resource  was  to  borrow,  and  insolvency  meant 
slavery. 

This  was  the  first  element  of  the  economic  discontent : 
namely,  the  deprivation  of  capital,  and  even  of  the  use 
of  one's  own  labor,  owing  to  the  constant  wars  and  to 
the  severe  laws  of  debt. 

The  second  element  of  the  economic  discontent  was 
the  land  hunger  of  the  Plebeians.  Some,  it  is  true,  had 
small  holdings  of  their  own,  but  others  had  not.  Natur- 
ally those  who  were  cut  off  from  the  land  asked  them- 
selves the  reason  why,  and  the  answer  was  far  from 
satisfactory. 

Most  of  the  wars  waged  by  Rome  were  successful, 
and  most  of  them  brought  enormous  accessions  of  terri- 
tory. Some  of  these,  like  the  mines,  could  not  be  con- 
veniently either  sold  or  rented  to  any  individuals;  the 
private  profits  would  have  been  so  enormous  and  so 
manifestly  unfair.  These  were,  therefore,  retained  and 


Influence  of  Economics  on  Roman  History       79 

worked  by  the  State.  But  there  were  also  vast  tracts 
of  land,  either  arable  or  pasture,  or  used  for  garden 
purposes.  These,  the  State,  as  we  have  already  ex- 
plained, either  distributed  in  small  holdings  among 
needy  Plebeians,  or  rented  out  to  rich  capitalists.  These 
last  were  not  absolute  owners,  but  only  possessors  of 
the  land,  and  had  to  pay  every  year  a  certain  rent. 

Naturally  there  was  a  struggle  between  the  poor 
Plebeians  and  the  men  of  wealth  as  to  whether  the  ager 
publicus  should  be  distributed  among  the  poor,  or  rented 
out  to  the  rich.  In  the  reign  of  Servius  Tullius,  this 
question  was  decided  rather  in  favor  of  the  Plebeians. 
Later  on,  Spurius  Cassius  tried  to  enforce  and  carry  out 
the  legislation  of  Tullius,  but  he  met  with  an  untimely 
death  at  the  hands  of  the  hostile  Patricians.  Alto- 
gether, as  time  went  on,  the  poor  Plebeians  saw  them- 
selves more  and  more  cut  off  from  the  land. 

This  deprivation  of  land  was  incidentally  accompanied 
by  another  evil.  This  was  an  unjust  incidence  of  tax- 
ation. For  the  capitalists,  in  so  far  as  they  were  in 
possession  of  the  ager  publicus,  were  exempt  from  the 
burden  of  taxation.  The  result  was  that  the  burden 
became  all  the  heavier,  not  only  for  those  Plebeians  that 
had  no  holdings,  but  even  for  those  who  had,  since  even 
these  were  subject  to  taxation. 

The  land  question,  however,  was  not  peremptory  in 
the  early  stages  of  the  struggle  between  the  Plebeians 
and  the  Patricians.  The  first  immediate  cause  of  the 
Plebeian  agitation  was  their  poverty  and  misery,  engen- 
dered by  want  of  capital. 

Their  discontent  in  494  B.C.  assumed  tangible  shape. 
After  a  successful  campaign  against  the  highland  tribes 
near  Rome,  the  Plebeians  refused  to  return  to  their  for- 
mer state  of  misery.  Taking  up  a  position  on  the  Mons 


8o  Greek  and  Roman  Period 

;er,  a  few  miles  from  Rome,  they  declared  their  inten- 
tion of  setting  up  a  separate  City-State  of  their  own. 
Their  threat,  if  carried  out,  would  have  been  unfortu- 
nate, both  for  themselves  as  well  as  for  the  Patricians, 
for  the  Plebeians  were  quite  lacking  in  the  experience  of 
an  organized  government. 

A  compromise,  however,  was  effected  between  the 
two  orders.  The  Plebeians  were  allowed  to  choose  two 
magistrates  of  their  own,  called  tribunes  of  the  people. 
If  any  Plebeian  found  himself  unjustly  molested  by  any 
Patrician  magistrate,  he  could  fly  for  protection  to  these 
tribunes,  who,  for  this  purpose,  were  to  keep  their 
doors  open  both  day  and  night. 

The  tribunes  thus  became  to  the  Plebeians  living 
altars  of  refuge,  and  the  immediate  grievance  under 
which  the  Plebeians  had  suffered  was  removed.  Nor 
was  the  institution  of  the  tribunate  merely  temporary. 
The  inviolability  of  the  tribune  was  secured  by  a  special 
compact  between  the  two  orders,  while  a  curse  was 
invoked  on  all  who  violated  the  privilege  and  person  of 
the  tribune.  Besides  this  strong  wall  of  defense,  there 
was  yet  another  safeguard  to  the  permanence  of  the 
tribunate,  which  was  that  the  tribune  could  call  to- 
gether the  assembly  of  the  people.  Such  a  power  not 
only  backed  up  the  authority  of  the  tribunes  by  the  sup- 
port of  the  Plebeians,  but  it  also  gave  to  the  Plebeians 
themselves  a  unity  and  solidarity  that  they  never  en- 
joyed before. 

Soon  the  tribunes  acquired  fresh  powers,  such  as  that 
secured  to  them  by  the  laws  of  Publius  Volero,  allowing 
them  to  take  action  with  the  people.  Then  their  free- 
dom of  action  was  still  further  guaranteed  by  a  law  that 
none  should  interfere  with  the  tribune  while  transact- 
ing business  with  the  people.  Thus,  even  to  attempt  to 


Influence  of  Economics  on  Roman  History       8 1 

interrupt  a  speech  of  the  tribune  was  an  offense.  No 
doubt  many  a  modern  political  orator  would  be  glad  of 
the  same  privileges  that  were  accorded  to  the  Roman 
tribunes.  In  not  more  than  forty  years  after  their 
institution  the  tribunes  were  allowed  to  be  present  at 
the  meetings  of  the  Senate,  and,  according  to  Dionysius, 
could  even  assemble  the  Senate  in  opposition  to  the  con- 
suls, in  order  to  discuss  the  merits  or  demerits  of  any 
bill.  Their  power  was  finally  and  supremely  established 
when  the  law  of  Hortensius  allowed  them  to  propose 
resolutions  to  the  people  that  should  be  binding  on  the 
whole  State,  and  also  allowed  any  tribune  to  veto  the 
proceedings  of  any  other  magistrate,  even  of  the  consul 
himself. 

Such  then  was  the  full  significance  of  the  great 
Plebeian  strike  of  494  B.C.  In  satisfying  the  economic 
necessities  of  the  moment  the  Plebeians  had  laid  the 
foundation  of  economic  power  in  Rome. 

So  far,  however,  there  had  been  no  agitation  on  the 
part  of  the  Plebeians  in  the  direction  of  more  political 
power.  They  were  still  debarred  from  holding  offices 
of  State,  and  from  taking  any  share  in  the  government 
of  the  country. 

It  was  the  economic  element  that  again  caused  an  agi- 
tation among  the  Plebeians.  Evidently  the  appointment 
of  tribunes  was  only  a  partial  remedy.  It  only  pro- 
tected the  Plebeian  from  actual  individual  oppression  at 
the  hands  of  the  Patrician,  or  from  another  Plebeian 
like  himself.  It  did  not  bring  the  Plebeian  closer  to  the 
capital  upon  which  his  labors  and  efforts  depended. 

This  time  it  was  the  agrarian  element  of  the  economic 
discontent  that  attracted  attention.  The  Plebeians  had 
been  debarred  from  their  lawful  share  of  the  land.  It 
is  true  that  much  of  the  public  land  was  unsuited  for  let- 


82  Greek  and  Roman  Period 

ting  out  in  small  allotments,  but  it  was  the  general  prin- 
ciple, that  the  land  was  for  the  Patricians  alone,  that 
excited  the  anger  of  the  lower  classes.  And  this  was 
increased  by  the  apparent  tendency  on  the  part  of  the 
State  not  to  insist  too  severely  on  the  payment  of  Patri- 
cian rents. 

In  487  B.C.,  therefore,  after  a  campaign  against  the 
Hernici,  Spurius  Cassius  proposed  that  the  land  taken 
from  them  should  be  divided  among  the  poor  Plebeians, 
both  Roman  and  Latin.  Some  such  proposal  had,  as  we 
have  said,  been  made  in  the  time  of  Servius  Tullius,  but 
this  differed  by  the  inclusion  of  the  Latins  among  the 
beneficiaries.  No  doubt,  Cassius,  who  had  successfully 
arranged  a  league  between  the  Romans  and  the  Latins, 
was  naturally  disposed  to  benefit  the  latter.  But  his 
good  intentions  were  bad  policy.  His  liberality  gave  an 
excuse  to  the  Patricians  to  refuse  his  request,  and  even 
to  hound  him  to  death,  while  it  also  partially  deprived 
him  even  of  the  support  of  the  Plebeians. 

Though  Cassius  thus  failed  in  487  B.C.,  yet,  about 
thirty  years  later,  a  concession  was  made  to  the  people  in 
the  matter  of  sharing  the  public  land  by  the  Lex  Icilla 
(456  B.C.).  This  law  provided  for  the  division  of  the 
land  on  the  Aventine  Hill  among  the  poor  Plebeians. 
Such  a  measure,  however,  was  only  extremely  partial  in 
its  effects.  The  people  were  still  substantially  cut  off 
from  their  birthright,  and,  in  the  later  periods  of  Roman 
history,  we  shall  see  that  this  was  mainly  responsible 
for  the  downfall  of  the  Roman  Republic. 

Incidentally,  however,  the  proposed  distribution  of 
land  on  the  Aventine  Hill  led  to  the  drawing  up  of  a 
written  code  of  law,  which  was  the  germ  of  the  Roman 
system  of  jurisprudence,  the  most  priceless  inheritance 
that  Rome  bequeathed  to  the  civilized  world.  The  con- 


Influence  of  Economics  on  Roman  History      83 

suls  did  not  carry  out  the  law  providing  for  this  distribu- 
tion of  land  and  it  was  their  consequent  impeachment 
that  led  to  the  compromise  by  which  the  Patricians  al- 
lowed a  commission  to  be  formed  for  the  purpose  of 
framing  a  written  code. 

In  the  year  385  B.C.,  we  find  the  question  of  debt  and 
poverty  still  pressing  for  a  solution.  The  recent  invasion 
of  the  Gauls  had  caused  a  great  deal  of  poverty  and 
hardship.  Again  were  the  needy  Plebeians  compelled 
to  borrow,  and  again  were  great  numbers  of  them  re- 
duced to  the  condition  of  slavery.  Livy  relates  how 
Torquatus  Manlius,  the  savior  of  his  country,  who  had 
defended  the  Capitol  from  the  Gauls,  was  walking 
through  the  Forum,  and  there  saw  a  pale  and  haggard 
old  man,  the  veteran  of  many  wars,  being  led  off  by  his 
creditor.  Manlius  came  to  the  rescue.  He  paid  the 
debt  and  set  the  old  man  free.  But  he  was  not  content 
with  this;  he  proceeded  to  denounce  the  Senators  for 
keeping  in  their  possession  the  gold  that  had  been  taken 
from  the  enemy.  The  results  were  fatal  for  him,  and 
for  the  cause  that  he  was  upholding.  He  was  tried  for 
treason  and  condemned  to  death,  while  the  treasure  still 
remained  in  the  hands  of  the  Patricians. 

Yet  another  attempt,  however,  had  been  made  to 
alleviate  the  condition  of  the  poor,  not  by  any  settled 
change  in  the  economic  conditions,  but  by  temporary 
measures  for  relief.  This  was  the  action  of  Spurius 
Maelius,  who,  in  440  B.C.,  sold  corn  to  the  citizens  at  an 
exceptionally  low  rate.  This,  also,  was  denounced  by 
the  upper  classes.  He  was  accused  of  exciting  a  revolu- 
tion, a  dictator  was  appointed,  and  his  master  of  horse, 
Ahala,  slew  Maelius  in  the  open  Forum. 

During  these  years,  however,  the  upper  classes  of  the 
Plebeians  had  been  slowly  attaining  the  object  of  their 


84  Greek  and  Roman  Period 

desire,  namely,  the  abolition  of  the  social  distinction  be- 
tween the  orders  of  the  Patricians  and  the  Plebeians,  and 
the  right  to  share  in  political  power.  In  449  B.C.  were 
passed  the  Valerian  Horatian  laws,  which  made  the 
resolution  of  the  Plebeians  binding  directly  on  them- 
selves, and  indirectly  on  the  whole  State.  In  445  B.C., 
the  Lex  Canuleia  gave  the  Plebeians  the  right  to  con- 
tract a  full  and  lawful  marriage  with  the  Patricians, 
thus  depriving  the  Patricians  of  all  excuse  for  exclusive 
usurpation  of  authority  on  the  ground  that  the  Plebeians 
had  not  the  secret  of  performing  those  sacred  rites  with 
which  were  blended  all  the  acts  of  State.  In  444  B.C., 
the  Plebeians  obtained  the  compromise  by  which  in  any 
year,  instead  of  the  two  consuls,  there  might  be  six  mili- 
tary tribunes  with  consular  power,  among  whom 
Plebeians  might  be  elected;  and  finally,  in  421  B.C.,  the 
important  office  of  questor  was  thrown  open  to  the 
Plebeians. 

Thus  by  rapid  steps  the  Plebeians  were  mounting  to 
the  highest  offices  of  the  State.  It  is  important,  how- 
ever, to  bear  in  mind  that  in  this  progress  there  were 
two  distinct  movements,  one  being  the  desire  of  the 
lower  Plebeians  to  remedy  their  economic  condi- 
tion, the  other  the  ambition  of  wealthy  Plebeians  to 
aspire  to  the  highest  offices  of  the  State.  Occasionally, 
as  in  the  appointment  of  tribunes  of  the  people,  we 
find  the  two  movements,  and,  even  afterwards,  these  two 
movements  must  have  considerably  aided  one  another. 

It  was,  however,  at  the  passing  of  the  Licinian 
(367  B.c^Jaws  that  we  find  the  evident  signs  of  the 
active  cooperation  between  the  two  classes  of  Plebeians. 
On  this  occasion,  the  richer  Plebeians  openly  allied 
themselves  with  the  poorer  Plebeians  with  the  express 
purpose  of  obtaining  their  support.  The  result  was  a 


Influence  of  Economics  on  Roman  History      85 

complete  victory  over  protracted  opposition  and  the 
presence  in  these  laws  of  the  two  elements,  the  political 
and  the  economical. 

There  were  four  changes  in  all.  Of  these,  two  were 
of  a  political,  and  the  others  of  an  economic  nature. 
The  political  clauses  were :  ( i )  the  restoration  of  the 
consulship,  with  the  provision  that  one  at  least  of  the 
consuls  must  be  a  Plebeian;  (2)  the  admission  of  the 
Plebeians  to  one  of  the  three  great  colleges  of  priests, 
namely,  that  of  the  keepers  of  the  Sibylline  books. 
Hitherto  there  had  been  two  Patricians  enjoying  this 
charge ;  now  ten  were  appointed,  of  whom  five  had  to  be 
Plebeians. 

The  economic  clauses  were :  ( i )  a  remission  of  debts 
to  the  extent  that  interest  already  paid  should  be  de- 
ducted from  the  capital,  and  the  rest  paid  off  in  three 
years  by  equal  instalments;  (2)  that  no  citizen  should 
hold  more  than  five  hundred  acres  of  public  do- 
main, or  pasture  upon  them  more  than  one  hun- 
dred oxen  nor  five  hundred  sheep.  According  to 
Appian,  another  clause  also  insisted  that  no  landholder 
should  employ  more  than  a  certain  number  of  slave 
workmen,  but  this  seems  hardly  probable,  for,  so  far, 
no  mention  had  been  made  of  any  agitation  regarding 
the  excessive  use  of  slave  labor. 

Such  were  the  provisions  of  the  Licinian  laws.  The 
political  clauses  were  the  signal  for  the  rapid  admission 
of  the  Plebeians  to  all  the  offices  of  State,  including  the 
censorship  and  dictatorship.  Thus,  all  political  differ- 
ence between  the  two  orders  had  ceased.  They  now 
practically  formed  one  political  body. 

The  economic  clauses  absolutely  gave  to  the  poor 
Plebeians  all  that  they  had  been  striving  after  for  so 
many  years,  and  were  an  attempt  to  deal  with  the  ever 


86  Greek  and  Roman  Period 

present  problem  of  the  prevalence  of  debt  and  of  the 
distribution  of  public  land. 

Unfortunately,  the  alleviation  of  the  distress  caused 
by  the  burden  of  heavy  debts  was  purely  a  temporary 
measure.  It  did  not  go  to  the  root  of  the  evil.  There 
was  no  clear  insight  into  the  real  economic  difficulty  of 
the  times,  which  was  that  the  poor  Plebeian  was  cut 
off  from  land  and  capital.  Moreover,  the  provision 
regarding  the  distribution  of  public  land  remained  un- 
heeded, and  so,  while  the  population  was  continually 
increasing,  we  find  the  estates  of  the  rich  growing  bigger 
and  bigger,  and  the  bulk  of  the  people  becoming  poorer 
and  more  discontented. 

The  economic  agitations  of  the  Plebeians,  however, 
had  vital  results  on  the  political  fortunes  of  Rome. 
Without  them,  the  amalgamation  of  the  two  orders 
would  never  have  been  completed,  or  at  least  it  would 
have  been  deferred  to  a  much  later  date.  As  the  eco- 
nomic reforms  of  Solon  inaugurated  a  new  kind  of  aris- 
tocracy, so  it  was  in  ancient  Rome.  An  aristocracy  of 
office  was  substituted  for  that  of  birth,  and  as  Athens 
presented  to  the  world  the  purest  type  of  Democracy 
so  Rome  was  now  to  present  to  the  world  the  spectacle 
of  the  most  perfect  Oligarchy  that  has  ever  been  real- 
ized, a  form  of  government  that  was  Republican  in  ap- 
pearance, but  in  which  the  reins  of  power  were  placed  in 
the  hands  of  a  few  families,  who,  by  long  experience  and 
tradition,  were  the  most  competent  to  guide  the  ship  of 
State. 


CHAPTER  VI 

THE   RISE   OF    THE    CAPITALISTS    AND    THE    FALL 
OF  THE   GRACCHI 

ALL  during  the  conflict  between  the  Patricians  and 
the  Plebeians,  Rome  had  been  gradually  extending  her 
sway  over  the  Italian  peninsula.  In  this  she  was  helped, 
partly  by  her  own  prowess,  partly  by  good  fortune. 
For  at  no  time  had  Rome  to  face  a  universal  hostile  com- 
bination. She  was  always  able  to  win  over  to  her  side, 
at  least  temporarily,  one  or  more  of  the  surrounding 
States. 

By  265  B.C.  the  whole  of  the  peninsula  from  the  Sicil- 
ian straits  to  the  north  of  Etruria  was  in  possession  of 
Rome.  And  the  expedients  adopted  by  Rome,  in  order 
to  retain  what  she  had  won,  were  signally  successful. 
By  giving  to  the  territories  unequal  rights,  she  produced 
mutual  jealousy,  but  drew  closer  the  bonds  of  attach- 
ment to  herself,  while,  by  military  roads  and  colonies, 
she  gradually  extended  over  all  her  territory  Roman 
civilization  and  Roman  culture. 

In  252  B.C.  Rome  even  extended  her  sway  over  what 
is  now  the  northern  part  of  Italy.  Liguria  and  Cis- 
Alpina  were  added  to  her  possessions,  and  these,  also, 
were  secured  by  the  same  policy  which  was  at  once  as 
strong  as  it  was  sagacious. 

The  war  with  Carthage  became  the  signal  for  a  career 
of  foreign  conquest.  Corsica,  Sardinia,  Sicily,  even 
Carthage  itself,  became  Roman  provinces.  To  these, 
also,  were  quickly  added  Spain,  Macedonia,  Greece, 
and  a  considerable  portion  of  Asia  Minor. 

Meanwhile,  after  the  laws  of  Sextus  and  Licinius 


88  Greek  and  Roman  Period 

had  been  passed,  the  Roman  constitution  had  been 
undergoing  a  rapid  development.  The  old  aristocracy 
of  the  Patricians  had  been  swept  away.  Names  that 
had  been  familiar  in  high  places  of  trust  no  longer  ap- 
peared. New  names  came  to  the  front,  some  of  them 
being  names  of  Patrician,  others  of  Plebeian  families. 

It  was  these  who  now  monopolized  the  reins  of  gov- 
ernment. While  the  sovereign  power  nominally  rested 
with  the  people,  who  in  their  public  assemblies  had  su- 
preme authority,  it  was  the  Senate  that  actually  carried 
on  the  administration.  In  the  Senate  sat  all  those  who 
had  held  important  offices  in  the  State.  Ex-consuls,  ex- 
asdiles  and  other  former  officials  occupied  the  benches  of 
the  Senate-house.  The  Senate  was  the  one  competent, 
the  one  experienced  body  of  men  in  Rome. 

Moreover,  the  very  wars  in  which  Rome  was  engaged 
tended  to  emphasize  the  growing  importance  of  the 
Senate.  The  Senate  alone  was  always  on  the  spot,  and 
could  apply  at  once  all  the  sagacity,  power,  wealth,  and 
resources  that  Rome  could  command.  While,  therefore, 
the  power  of  the  people  was  nominal,  the  power  of  the 
Senate  was  real,  and  was  accompanied  by  a  glamour 
and  a  splendor  that  made  the  Roman  Senate  the  object 
of  world-wide  respect  and  admiration. 

There  were,  however,  certain  economic  forces  that 
were  now  working  their  way,  and  threatening  to  under- 
mine the  stability  of  these  political  elements. 

The  old  economic  questions  regarding  the  misery  of 
the  poorer  people,  the  prevalence  of  debt,  and  the  un- 
equal distribution  of  land  had  remained  still  unsolved. 

In  fact,  the  conquests  of  Rome  and  all  the  super- 
abundance of  wealth  that  she  was  now  acquiring  only 
accentuated  these  problems.  The  public  wealth  was 
indefinitely  enlarged,  but  the  number  of  small  and 


The  Rise  of  the  Capitalists  89 

prosperous  peasant  farmers  was  getting  smaller  also  in 
indirect  ratio.  Enormous,  indeed,  was  the  wealth  that 
now  circulated  through  Roman  society,  but  the  circula- 
tion of  such  wealth  was  confined  only  to  certain  channels. 

At  this  particular  period  only  one  section  of  Roman 
society  was  growing  wealthier,  and  that  was  the  Equites 
or  Knights.  Partly  by  the  prohibition  which  prevented 
Senators  from  engaging  in  any  extensive  trade,  partly 
owing  to  the  lower  classes  being  kept  aloof  from  any 
lucrative  contact  with  the  commercial  movements  of  the 
time,  only  the  Equites  were  able  to  acquire  enormous 
sums  of  wealth.  They,  alone,  were  the  capitalists. 
Great  landed  estates  may  still  have  been  in  the  hands  of 
the  Patricians,  but  all  trade  and  all  banking,  and  espe- 
cially all  financial  undertakings  connected  with  the  gov- 
ernment, were  in  the  hands  of  the  Equites. 

Both  the  agrarian  problem  and  the  problem  of  un- 
equal distribution  of  wealth  came  to  the  front  during 
the  agitation  roused  by  the  celebrated  reforms  of  the 
Gracchi.  There  was  also  at  the  same  time  a  political 
element,  and  nothing  can  be  more  instructive  than  to  see 
how  here,  as  in  so  many  other  cases,  the  political  for- 
tunes of  Rome  were  determined  more  by  the  economic 
than  by  any  other  factor. 

A  brief  survey,  however,  of  the  general  movement 
started  by  the  Gracchi  will  be  necessary  to  remind  us 
who  the  Gracchi  were,  what  they  proposed,  and  how 
far  their  measures  were  successful. 

Tiberius  and  Caius  Gracchus  were,  according  to 
Plutarch,  two  brothers  endowed  with  great  natural 
gifts,  which  were  still  further  developed  by  the  care 
and  skill  of  their  mother,  Cornelia.  Alike  in  many  vir- 
tues, in  temperance,  in  fortitude,  in  liberality,  and  great- 
ness of  mind,  they  differed  in  such  a  way  that  one 


90  Greek  and  Roman  Period 

seemed  to  compensate  for  what  was  lacking  in  the  other. 
Tiberius  Gracchus  in  his  outward  deportment,  in  his 
voice  and  gestures,  showed  the  calmness  and  even  bal- 
ance of  his  disposition.  Caius  Gracchus,  by  his  vehe- 
mence of  speech  and  force  of  gesture,  betrayed  the  tu- 
multuous rushing  of  the  many  thoughts  that  thronged 
into  his  mind. 

Tiberius  Gracchus  was  the  first  to  enter  the  stormy 
arena  of  Roman  politics.  He  attached  himself  to  no 
particular  party,  but  attempted,  single-handed,  to  accom- 
plish the  reforms  that  seemed  to  him  most  important. 
He  saw  that  the  enormous  estates,  owned  by  single  pro- 
prietors and  worked  by  gangs  of  slaves,  were  doing  ir- 
reparable damage  to  the  commonwealth;  that  the  free 
laborers  were  being  driven  from  the  country,  and  were 
fast  gathering  into  the  city  of  Rome,  already  sufficiently 
congested.  He  also  perceived  that  the  ranks  of  the  un- 
employed and  of  the  homeless  were  ever  becoming 
greater.  To  him,  therefore,  the  only  feasible  remedy 
that  presented  itself  was  to  distribute  more  of  the  public 
land  among  the  poor  classes.  The  remedy  was  by  no 
means  new.  Already  by  the  Licinian  laws  it  had  been 
declared  that  no  one  should  hold  more  than  five  hundred 
jugera  of  public  land;  but  the  law  had  been  disregarded, 
and  what  he  proposed  was  to  enforce  it  anew. 

He  therefore  tried  to  introduce  a  law  that  all  the 
land  held  by  private  owners,  above  the  legal  amount, 
should  be  divided  among  the  people.  The  proposal  was 
just  and  reasonable,  and  was  drawn  up  by  persons  emi- 
nent for  wisdom  and  authority. 

Unfortunately,  however,  something  more  was  needed 
than  a  sense  of  justice  and  legal  fitness.  Both  the  Pa- 
tricians and  Knights  were  alike  injured  and  offended. 
They  were  the  organized  parties  in  society.  Unity,  past 


The  Rise  of  the  Capitalists  91 

experience,  possession,  both  of  office  and  of  wealth, 
were  at  their  command.  They  saw  that  their  interests 
were  vitally  threatened.  At  once  they  joined  their 
forces  and  proposed  to  crush  the  measures,  and  to  de- 
feat the  intruder  upon  their  long-established  rights  of 
prescription.  To  them,  all  that  Tiberius  Gracchus 
could  oppose  was  the  fickle  allegiance  of  a  short-sighted 
populace. 

Gracchus,  himself,  lent  them  an  instrument  with 
which  to  accomplish  his  overthrow.  This  he  did  by  try- 
ing to  obtain  the  object  by  unconstitutional  means. 
Octavius,  his  colleague  in  the  tribunate,  had  thwarted 
the  proposed  reform  by  an  obstinate  veto.  Tiberius, 
accordingly,  proposed  to  the  people  that  Octavius 
should  be  deposed  from  office.  Such  a  proposal  was  dis- 
tinctly revolutionary,  for,  according  to  Roman  usage,  no 
magistrate  could  be  molested  during  his  year  of  office. 
Octavius,  however,  was  dragged  from  the  rostra,  the 
bill  was  passed,  and  thus,  in  addition  to  the  Senators 
and  Knights,  a  third  party  was  organized  in  oppo- 
sition to  Tiberius,  namely,  the  party  of  the  Constitu- 
tionalists. 

Tiberius  then  named  a  commission  for  the  purpose  of 
carrying  out  the  distribution  of  land.  Besides  himself, 
the  other  two  persons  appointed  were  Caius  Gracchus, 
his  brother,  and  Appius  Claudius,  his  father-in-law. 
Such  a  partial  nomination  was,  under  the  circumstances, 
scarcely  prudent.  It  gave  to  his  reform  the  appearance 
of  a  movement  dictated  by  motives  of  personal  ag- 
grandizement. The  opposition  gathered  strength  and 
became  more  and  more  turbulent.  It  was  by  violence 
that  Tiberius  had  tried  to  accomplish  his  purpose,  and, 
by  a  fitting  retribution,  it  was  by  violence  that  he  was 
defeated.  On  the  day  that  he  presented  himself  for  re- 


92  Greek  and  Roman  Period 

election  for  the  tribunate,  a  riot  took  place,  in  the 
course  of  which  he  lost  his  life. 

Thus  perished  Tiberius.  His  unconstitutional  be- 
havior had  had  the  effect  of  uniting  still  further  the  two 
orders  of  the  Senators  and  of  the  Equites,  and  of  mak- 
ing still  more  difficult  the  task  of  carrying  out  the  law 
that  had  been  passed  by  violent  and  illegal  means. 

But  it  was  not  likely  that  Caius  Gracchus  would  sub- 
mit tamely  to  the  violent  extinction  of  plans  that  were 
so  dearly  cherished,  both  by  his  brother  and  by  himself. 
By  a  rapid  series  of  movements,  he  soon  displayed  his 
real  intentions.  Violating  established  usage,  he  returned 
to  Rome,  although  his  term  of  questorship  had  not  yet 
expired.  He  then  struck  at  the  opponents  of  the  reform 
by  proposing  two  laws,  one  which  disqualified  degraded 
magistrates  from  holding  any  magistracy — a  law  which 
was  clearly  aimed  at  Octavius — and  the  second  law, 
which  denounced  the  banishment  of  a  citizen  without 
trial,  was  aimed  at  Popilius,  the  pretor  who  had  ban- 
ished the  friends  of  Tiberius.  The  first  law  failed  to 
pass,  but  the  second  succeeded,  with  the  result  that 
Popilius  thought  it  prudent  to  retire  from  Italy. 

Having  thus  cleared  the  ground  for  action,  Caius  now 
brought  forward  a  series  of  proposals.  Some  of  these 
were  economic  in  their  nature,  others  were  directly  politi- 
cal. The  economic  reforms  were  of  such  a  nature  as 
to  secure  the  popularity  of  the  people,  and  of  the  Equites 
who,  by  means  of  them,  would  acquire  great  political  as 
well  as  financial  power. 

The  economic  proposals  were:  (a)  that  the  public 
land  should  be  divided  among  the  citizens;  (b)  that  the 
citizens,  every  month,  should  receive  a  measure  of  corn 
for  a  sum  of  money  below  the  market  price;  (c)  that 
the  soldiers  should  be  clothed  at  the  public  expense,  and 


The  Rise  of  the  Capitalists  93 

that  none  should  be  forced  to  serve  in  the  army  who 
had  not  attained  the  full  age  of  eighteen. 

Evidently  these  proposals  were  likely  to  conciliate  the 
good-will  of  the  masses,  and,  what  is  especially  to  be 
noted,  of  the  military  element  of  the  population. 

It  now  remains  to  consider  the  clauses  that  were  politi- 
cal in  their  nature.  They  were:  (a)  that  the  Knights 
only  should  sit  as  judges;  (b)  that  all  the  Italians 
should  share  with  the  citizens  of  Rome  in  the  right  of 
voting. 

If  we  compare  carefully  the  economic  with  the  politi- 
cal clauses,  we  shall  find  that  both  concurred  to  the  same 
effect,  namely,  the  alteration  of  the  balance  of  power  in 
the  State.  The  practical  power  of  the  Senate  would  be 
reduced  to  a  nullity,  and  the  Equites  would  become  su- 
preme. Moreover,  the  interests  of  the  Knights,  as  well 
as  of  the  lower  classes  and  of  the  Italians,  would  have 
been  united  against  the  Senate.  Naturally,  for  the  time 
being,  Caius  Gracchus  became  the  most  powerful  man 
in  Italy. 

His  economic  administration  was  certainly  most  bene- 
ficial. In  addition  to  the  more  equitable  division  of  the 
land,  he  was  also  extremely  anxious  to  find  means  that 
might  lessen  the  congestion  in  the  city  and  raise  the  eco- 
nomic condition  of  the  people.  Thus,  amongst  other 
things,  he  proposed  that  colonies  should  be  established 
and  that  granaries  should  be  built.  He  was  also  deeply 
interested  in  the  construction  of  good  roads.  Indeed, 
the  way  in  which  the  roads  were  paved,  and,  as  far  as 
possible,  made  level  by  bridges,  and  in  which  hollows 
were  filled  up,  does  great  credit  to  the  engineering  skill 
of  those  times. 

His  political  measures  were  not  so  uniformly  worthy 
of  praise.  The  clause  that  made  the  Knights  holders  of 


94  Greek  and  Roman  Period 

judicial  power  was  especially  disastrous.  Hitherto, 
there  had  been,  indeed,  great  abuses  resulting  from  the 
partiality  of  the  Senators  as  judges.  Bribery  or,  as 
Cicero  called  it,  "the  itching  palm,"  was  only  too  fre- 
quent. In  fact,  collusion  between  the  Senators  and 
Knights  enabled  the  latter  to  perpetrate  almost  any  act 
of  extortion.  But  matters  became  ten  times  worse  when 
the  Knights  themselves  became  judges,  and  had  the 
power  to  try  accusations  brought  against  members  of 
their  own  order.  True  it  is  that  Cicero  commended  this 
as  working  well,  but  we  must  also  bear  in  mind  his  parti- 
ality to  the  Equites,  of  which  he  himself  was  a  leader, 
while  not  overmuch  confidence  can  be  placed  in  the 
genuineness  of  the  utterances  of  an  advocate  while  argu- 
ing in  a  court  of  justice. 

The  clause  that  related  to  the  Italian  allies  was  cer- 
tainly just  and  reasonable.  So  far,  they,  the  Italian  al- 
lies, had  been  in  subjection  to  Rome,  and  had  expe- 
rienced all  the  burdens  without  the  corresponding  ad- 
vantages of  such  subjection.  As  for  the  Latin  allies, 
they  were,  as  Appian  remarks,  blood  relations  of  the 
Romans  themselves,  and  as  for  the  others,  if  they  were 
called  upon  to  pay  taxes  and  to  help  fight  the  battles  of 
Rome,  it  was  only  fair  that  they  should  also  participate 
in  some  of  the  privileges  of  citizenship,  especially  that 
of  voting. 

The  claim  was  certainly  just  when  looked  at  from  a 
general  and  far-reaching  point  of  view,  but  its  imme- 
diate effect  was  calculated  to  weaken  and  to  irritate  still 
further  the  Senate.  It  was  inevitable  that  the  allies 
should  vote  for  whatever  measures  were  proposed  by 
Caius,  and  thus  the  Senate  would  have  been  placed  still 
more  helplessly  under  the  heels  of  a  man  who  was  al- 
ready their  avowed  enemy. 


The  Rise  of  the  Capitalists  95 

And  there  was  also  another  element  in  the  plans  of 
Gracchus  that  had  been  either  overlooked,  or  had  been 
disregarded  as  not  provocative  of  serious  results.  This 
was  the  natural  hostility  of  the  Roman  citizens  to  the 
extension  of  the  franchise.  Nor  was  this  hostility  with- 
out some  justification,  when  we  remember  that  the  en- 
franchisement of  the  Italian  allies  would  have  meant 
the  undoing  of  the  very  nature  of  the  Roman  govern- 
ment, which  was  that  of  a  City-State — especially  as  at 
that  time  there  seemed  to  be  no  means  of  substituting 
anything  in  its  place.  For  the  allies  could  scarcely 
travel  all  the  way  to  Rome  from  the  distant  parts  of 
Italy  in  order  to  record  their  vote,  and,  on  the  other 
hand,  representative  government  was  then  unknown. 

A  coalition  between  the  Senate  and  the  Roman  citi- 
zens was  speedily  effected.  The  violence  of  the  parti- 
zans  of  Gracchus  hastened  the  reaction,  and  the  result 
was  a  sanguinary  riot  in  which  Caius  Gracchus  was 
killed. 

The  attempted  revolution  of  the  Gracchi  was,  indeed, 
a  failure  from  nearly  all  points  of  view.  The  enfran- 
chisement of  the  Italian  allies  was  still  delayed.  The 
Knights  so  grievously  abused  their  new  power  that  it 
had  to  be  taken  away  from  them,  or  at  least  partially  re- 
duced. Even  the  economic  reforms  also  failed  of  their 
full  effect.  The  great  landed  estates  continually  in- 
creased, the  poor  became  poorer,  and  even  more  turbu- 
lent and  seditious. 

At  the  same  time  the  revolution  reveals  like  a  power- 
ful flash  of  light  some  of  the  many  complex  problems 
that  were  now  facing  Rome.  It  showed  the  presence  of 
unseen  forces  that  were  gradually  and  completely  alter- 
ing the  whole  body  politic  of  Rome,  forces  that  in  their 
very  nature  were  economic,  and  were  the  very  forces 


96  Greek  and  Roman  Period 

that  had  brought  about  the  abolition  of  the  distinction 
between  Patrician  and  Plebeian,  and  which  were  now 
preparing  the  way  for  the  closing  act  of  the  drama  of 
the  great  Roman  Republic. 

We  perceive  more  than  ever  that  it  was  such  burning 
questions  as  the  division  of  land  and  the  poverty  of  the 
masses  that  were  continually  shaping  the  destinies  of  the 
Roman  people.  Alterations  in  the  balance  of  political 
power,  the  rise  and  fall  of  political  heroes,  were  but 
evanescent  bubbles  revealing  the  strong  and  ever-flowing 
current  beneath. 


CHAPTER  VII 

CONSPIRACY  OF  CATILINE,  ASCENDENCY  OF  JULIUS 

CAESAR,  AND  THE  DOWNFALL  OF 

THE  REPUBLIC 

THE  failure  of  the  reforms  of  the  Gracchi  allowed  an 
unimpeded  progress  to  the  material  forces  that  were  fast 
undermining  the  whole  structure  of  the  Republican  form 
of  government.  The  people  were  still  restless,  owing 
to  want  of  land  and  to  their  continual  poverty;  the  vast 
estates  still  further  increased,  and,  with  the  almost  ex- 
clusive employment  of  slave  labor,  continued  to  drive 
away  the  free  laborers,  who  added  to  the  already  con- 
gested population  in  the  capital. 

At  the  same  time,  in  the  political  sphere,  the  evil  re- 
sults of  what  the  Gracchi  had  succeeded  in  doing,  and 
had  failed  to  do,  quickly  became  apparent.  To  the 
Equites,  or  Knights,  had  been  confided  the  reins  of  judi- 
cial power,  and  this  power  they  had  grossly  abused. 
So  great  was  this  abuse  that  Livius  Drusus  tried  to  apply 
a  remedy  by  adding  three  hundred  Equites  to  the 
Senate  of  three  hundred,  and  by  giving  to  the  com- 
bined six  hundred  all  judicial  powers.  The  remedy, 
however,  failed.  Corruption  still  remained  rampant. 
Then,  what  Gracchus  had  failed  to  do  was  also  a  fester- 
ing worm  in  the  commonwealth.  The  allies  still 
clamored  for  the  franchise,  while  many  in  Rome  were  in 
favor  of  it,  but  their  demand  was  refused  by  the  now. 
powerful  senatorial  party.  From  this  sprang  the  Mar- 
sic  or  Social  War.  Like  all  civil  wars,  the  fight  was  ex- 
tremely desperate,  and  at  one  time  threatened  the  entire 
destruction  of  Rome,  but  in  89  B.C.  the  Italians  were  de- 


98  Greek  and  Roman  Period 

feated  by  C.  Pompeius  Strabo.  They  were  compelled 
to  submit,  but  the  object  of  the  rebellion  was  gained, 
and  the  great  majority  of  the  Italians  received  the  fran- 
chise and  became  full  Roman  citizens. 

It  was  during  the  Social  War  that  the  power  of  Sulla 
began.  His  successes  brought  him  to  the  front. 
Marius,  his  rival,  was  for  a  time  successful,  but  was 
removed  from  the  way  by  a  natural  death. 

Then  began  the  dictatorship  of  Sulla.  He  attempted 
to  patch  up  the  worn-out  constitution  of  Rome.  This  he 
did  by  endeavoring  to  restore  to  the  Senate  its  old  pres- 
tige and  important  powers.  He  sought  to  infuse  fresh 
blood  into  the  Senate  by  the  creation  of  three  hundred 
new  members,  while  he  restored  its  dignity  and  prestige 
by  transferring  to  it  again  its  old  judicial  powers.  On 
the  other  hand,  he  reduced  the  power  of  the  rival  ele- 
ments of  the  Senate  by  the  decree  that  the  tribunes 
should  not  be  eligible  for  any  higher  office,  by  the  prac- 
tical abolition  of  the  censorship,  and  still  more  by  the 
enactment  that  no  man  could  be  a  magistrate  and  hold 
military  office  at  the  same  time. 

The  general  purport  of  all  these  legislative  changes 
is  perfectly  clear,  nor  was  he  unmindful  of  the  material 
means  necessary  for  enforcing  his  ideas.  The  enfran- 
chisement of  ten  thousand  slaves  gave  him  the  use  of 
a  corresponding  standing  army  that  was  always  at  his 
disposal,  while  throughout  Italy  the  colonies  that  he 
assigned  to  his  veterans  were  likely  to  crush  any  oppo- 
sition coming  from  that  quarter. 

All  the  reforms  of  Sulla,  however,  were  framed  in 
perfect  disregard  of  the  important  economic  issues  that 
were  at  stake.  His  constitutional  fabric  soon  melted 
away  like  a  castle  of  snow  under  the  rays  of  the  sun. 
Only  the  clauses  of  Sulla  that  effected  the  reforms  of  the 


Conspiracy  of  Catiline  99 

law  courts,  and  that  rearranged  certain  magisterial 
functions,  were  allowed  to  remain. 

By  the  time  we  come  to  the  consulship  of  Cicero  and 
the  appearance  of  Julius  Caesar,  we  find  ourselves  face 
to  face  with  a  more  definitely  organized  party  in  the 
State.  This  was  the  party  of  the  Democrats.  At  first, 
their  presence  in  the  State  was  extremely  shadowy  and 
indefinite.  It  took  time  before  they  could  assume  a  defi- 
nite organization  with  a  defined  program  and  policy  of 
action. 

It  contained,  moreover,  very  heterogeneous  elements. 
While  on  the  one  hand  there  were  those  who  were  con- 
tent to  wait  until  the  expansion  of  ideas  and  force  of 
circumstances  should  enforce  the  claims  of  the  people, 
there  was  already  a  section  of  extremists  who  wanted  a 
revolution  immediately.  Most  of  them  were  men  of 
bankrupt  means  who  had  everything  to  gain  and  noth- 
ing to  lose  by  a  course  of  precipitate  action. 

This  is  curiously  brought  out  by  the  Conspiracy  of 
Catiline.  This  conspiracy,  as  Cicero  clearly  points  out 
in  his  speeches,  was  concocted  among  fugitive  rascals 
from  different  parts  of  the  world,  ruined  spendthrifts 
and  gamblers  who  marked  out  the  citizens  for  slaughter, 
and  the  city  itself  for  fire  and  pillage,  while  at  the  head 
of  these  was  Catiline,  who  himself  belonged  to  the  Pa- 
trician order,  but,  owing  to  the  persecution  to  which  he 
had  been  subjected,  was  driven  into  the  mistake  of  plac- 
ing himself  at  the  head  of  what  was  sure  to  turn  out  an 
abortive  revolution. 

Caesar,  on  the  other  hand,  was  of  quite  a  different 
temperament  from  that  of  Catiline.  He  was  cautious 
and  moderate.  In  the  early  stages  of  his  career,  he  kept 
himself  carefully  in  the  background,  and  only  by  slow 
degrees  engaged  as  the  champion  and  leader  of  the 


ioo  Greek  and  Roman  Period 

Democratic  party.  And  yet  Caesar  himself  was  impli- 
cated in  the  early  proceedings  of  the  Conspiracy  of  Cati- 
line. The  evidence  given  by  Suetonius  on  this  point 
seems  fairly  clear.  Amongst  other  things,  he  quotes  a 
fragment  of  one  of  Cicero's  last  letters  which  points  to 
Caesar  as  being  implicated  in  the  conspiracy,  and  it  is 
also  a  very  incriminating  circumstance  that,  at  the  trial 
of  the  conspirators,  it  was  Caesar  who  proposed  to  sub- 
stitute for  capital  punishment  the  milder  punishment 
of  imprisonment  in  the  cities  of  Italy,  from  which,  of 
course,  they  could  be  freed  either  by  force  or  stratagem. 

There  is  no  doubt  that  Caesar  himself  was  at  first 
cognizant  of  the  desperate  designs  of  Catiline,  but  the 
temporary  coalition  of  the  two  men  clearly  indicates  the 
temporary  fusion  of  the  moderate  and  the  extreme  revo- 
lutionary parties.  It  also  incidentally  shows  how  the 
policy  of  these  two  sections  in  the  early  stages  consider- 
ably differed.  Catiline's  policy  of  force,  at  so  early  a 
stage,  would  have  failed  in  one  of  the  essential  elements 
of  the  far-seeing  policy  of  Caesar — namely,  the  separa- 
tion of  the  two  orders  of  the  Patricians  and  Plebeians. 
For  any  scheme  of  unusual  confiscation  would  have  men- 
aced alike  the  interests  of  both  Plebeian  and  Patrician. 

Hence  came  the  intense  eagerness  on  the  part  of 
Caesar  to  disassociate  himself  from  such  extreme  parti- 
zans  as  the  Catilinarian  conspirators.  Possibly  he  also 
saw  already  the  importance  of  previously  building  up 
an  organized  military  power  with  which  to  subject  the 
military  forces  that  were  at  the  disposal  of  the  Senate. 

Anyhow  it  is  interesting  to  notice  how  one  of  the 
factors  of  the  revolution  that  was  to  terminate  in  the  as- 
cendency of  Julius  Caesar  was  the  economic  element. 
The  congested  state  of  the  city,  the  vast,  unwieldy,  and 
badly  managed  estates  of  rural  Italy,  the  desperation  of 


Conspiracy  of  Catiline  101 

the  poor  free  laborer,  the  recklessness  of  the  debtors, 
ever  increasing  in  number — it  was  these  things  that 
were  gradually  dissolving  the  old  organism  of  oligarchic 
government  in  Italy.  In  all  great  revolutions,  the  driv- 
ing force  which  hastens  on  events  appears  to  reside 
chiefly  in  the  turbulent  discontent  of  the  lower  classes. 
Party  leaders  often  tend  to  advance  cautiously,  but  they 
are  swept  ahead  by  the  blind,  impassioned  forces  behind 
them. 

Caesar,  however,  did  not,  at  the  beginning  of  his 
career,  rely  upon  the  undisciplined  masses  of  the  people. 
He  tried  to  gain  time,  and  especially  did  he  seek  to  iso- 
late the  Senate,  that  would  have  been  the  greatest  ob- 
stacle to  his  plans.  First  he  tried  to  isolate  it  from  the 
Knights,  who,  as  the  capitalists,  represented  the  financial 
power  of  the  State.  Their  leader  was  the  wealthy  Cras- 
sus.  Then,  there  was  the  army  headed  by  the  victorious 
general,  Pompey,  and  finally  there  was  the  party  of  those 
who  hoped  to  reorganize  the  State  on  constitutional 
lines. 

Caesar  zealously  made  overtures  to  the  leaders  of 
these  respective  parties.  The  result  was  the  formation 
of  the  celebrated  triumvirate,  consisting  of  Caesar, 
Crassus,  and  Pompey. 

By  means  of  the  triumvirate,  Caesar  obtained  what  he 
wanted,  namely,  the  consulship,  while  later  on,  by  means 
of  the  same  alliance,  Caesar  also  secured  the  extension 
of  his  proconsulship  in  Gaul  for  another  five  years. 
Such  an  extension  of  service  was  all-important.  It  en- 
abled him  to  complete  the  conquest  of  Gaul,  and  to  or- 
ganize that  military  power  which  was  to  enable  him 
finally  to  seize  the  reins  of  power. 

At  length,  toward  the  end  of  the  second  term  of 
Caesar's  proconsulship,  the  true  natures  of  the  forces 


IO2  Greek  and  Roman  Period 

that  had  been  at  work  for  years  openly  revealed  them- 
selves. Pompey,  the  old  ally  of  Caesar,  became  es- 
tranged from  him;  the  senatorial  and  reactionist  party 
looked  to  Pompey  to  prepare  for  a  final  struggle  in  or- 
der to  retain  their  power,  while  Caesar  was  now  forced 
by  the  violence  of  his  enemies  at  Rome  to  make  the  final 
bid  for  the  supreme  power,  the  possession  of  which, 
according  to  Mommsen,  had  been  the  object  of  his  policy 
for  years.  At  the  head  of  his  well-trained  legions, 
Caesar  crossed  the  Rubicon,  and  with  this  act  began  the 
civil  war  which  ended  in  making  him  supreme  head  of 
the  State. 

If  we  examine  carefully  the  nature  of  Caesar's  work, 
we  shall  find  that  it  was  the  final  consummation  of  ten- 
dencies that  had  been  working  their  way  for  generations. 
Poverty,  discontent,  bad  distribution  of  wealth,  hope- 
less misery,  and  a  cry  for  a  new  system  of  government — 
all  these  had  been  inarticulate,  or  but  feebly  expressed, 
by  such  movements  as  those  of  the  Gracchi.  But  now 
there  had  arrived  the  man  for  the  epoch,  the  man  who 
could  make  articulate  the  cry  of  centuries  and  could 
focus  and  guide  all  these  material  forces  ever  moving, 
but  vainly  groping  their  way. 

We  have  already  seen  the  nature  of  some  of  these 
forces.  The  early  agitations  of  the  poor  Plebeians,  the 
efforts  of  such  reformers  as  Cassius,  the  Gracchi,  and  of 
Livius  Drusus,  revealed  that  the  lower  classes  were  suf- 
fering from  a  chronic  condition  of  land  hunger.  We 
have  also  seen  how  industry  had  been  depressed  by  the 
severe  laws  of  debt  and  the  want  of  any  adequate  bank- 
ruptcy law. 

But  there  was  another  cause  of  disruption,  one  that, 
especially  during  the  later  years  of  the  Roman  Republic, 
had  become  prevalent.  This  cause  was  the  alteration 


Conspiracy  of  Catiline  103 

in    the    size    and    material   structure    of    the    Roman 
State. 

From  being  a  City-State,  Rome  had  gradually  devel- 
oped into  an  empire.  Her  sway  extended  from  Spain 
in  the  West  to  the  rich  lands  of  Asia  Minor  in  the  East. 
For  weal  or  woe  these  possessions  now  formed  her  very 
self.  And  yet  there  was  no  form  of  government  yet  de- 
vised which  could  deal  adequately  with  the  needs  of  such 
widely  distant  lands.  They  were  all  practically  at  the 
mercy  of  the  governors  and  tax-gatherers.  The  loss  of 
their  political  independence  might  probably  have  been 
endured.  Indeed,  as  a  matter  of  fact,  the  local  units  of 
administration  in  the  provinces  enjoyed  a  great  deal  of 
local  authority,  some  more,  some  less.  What,  perhaps, 
was  the  greatest  cause  of  complaint  was  the  lack  of  gen- 
eral uniformity,  and  the  want  of  continuity  of  policy. 
The  Roman  governor  administered  the  province  very 
much  according  to  his  own  fancy.  There  was  no  tradi- 
tion of  government  in  the  province  itself  to  bind  him, 
and,  if  there  had  been  such  tradition  in  Rome,  the  dis- 
tance was  too  great  from  the  mother  city  to  allow  it  to 
exercise  any  influence  over  him. 

These  complaints,  however,  were  not  of  a  very  seri- 
ous nature.  But,  when  we  come  to  the  economic  condi- 
tion of  the  provinces,  we  find  the  case  very  different. 
The  taxes  which  Rome  levied  on  the  provinces  were  not 
collected  directly,  but  were  farmed  out  to  the  publicans. 
These  publicans,  or  tax-gatherers,  were  too  often  guilty 
of  the  greatest  extortion.  Possibly  it  is  for  this  reason 
that  in  the  New  Testament  the  publicans  are  mentioned 
together  with  the  sinners.  How  evil  must  have  been 
their  practices  we  can  partly  gather  from  a  letter  which 
Cicero  wrote  to  his  brother,  who  was  governor  of  Asia. 
In  this  communication  Cicero  tells  his  brother  that  if 


IO4  Greek  and  Roman  Period 

he  yields  to  the  publicans,  the  consequence  will  be  the 
utter  ruin  of  those  whose  safety  and  interests  it  is  his 
duty  to  guard.  Cicero's  own  experience,  when  governor 
of  Cilicia,  confirms  the  same  thing.  Thus,  he  found  that 
certain  communities  were  in  arrears  with  the  tax-gath- 
erers. A  delay  had  been  granted,  but  only  on  condi- 
tion of  the  payment  of  exorbitant  interest.  It  is  no  won- 
der that  the  tax-gatherer  became  an  object  of  scorn  and 
irritant  hatred. 

Besides  the  exactions  of  the  publicans,  there  were  also 
the  financial  burdens  imposed  upon  the  provinces  by  the 
Roman  governor.  This  official  had  almost  unlimited 
chances  of  gratifying  his  rapacity.  As  in  the  case  of  Ap- 
pius,  he  could  force  the  provincials  to  pay  large  sums  of 
money  under  threat  of  quartering  his  troops  upon  them. 
But  even  leaving  aside  these  violent  means  of  extracting 
money,  the  ordinary  legal  allowances  were  a  consider- 
able drain  upon  the  resources  of  the  provincials.  For 
example,  there  was  the  considerable  quantity  of  corn 
that  the  Roman  governor  might  requisition  every  year 
for  his  own  consumption.  Generally,  this  far  exceeded 
the  required  amount,  and  the  governor  would  then 
make  profit  by  commuting  the  supply  of  corn  for  a  sum 
of  money. 

Altogether  the  provinces,  what  between  the  exactions 
of  the  publicans  and  those  of  the  bad  governors,  of  whom 
there  were  plenty,  were  in  a  chronic  state  of  economic 
discontent,  nor  did  there  seem  to  be  any  redress  for 
their  grievances.  The  governor,  during  his  term,  was  in 
practical  possession  of  unchecked  jurisdiction,  and  at 
the  end  of  his  term  of  office  it  was  rarely,  indeed,  that 
he  could  be  brought  to  account  for  his  evil  doings. 

When  Caesar,  therefore,  crossed  the  Rubicon,  he 
found  his  presence  demanded  not  only  in  Italy  itself,  but 


Conspiracy  of  Catiline  105 

also  in  the  provinces.  To  the  lamentations  of  the  poorer 
Romans  was  also  added  a  yet  inarticulate  claim  of  the 
oppressed  provincials. 

Such  was  the  condition  of  Italy  and  of  the  provinces, 
and  Caesar  himself  had  already  recognized  that  condi- 
tion. During  his  sojourn  in  Gaul  he  had  been  able  to 
take  a  calm  and  collected  view  of  the  condition  of  the 
empire  as  a  whole.  It  was  thus  that  he  succeeded  in 
drawing  to  a  focus  all  the  burning  questions  of  the  time, 
and  that  in  his  policy  he  showed  wideness  and  thorough- 
ness of  view. 

He  saw  that  the  old  elements  of  the  political  consti- 
tution of  Rome  were  beyond  repair,  and  he  saw  that 
the  only  available  substitute  was  a  strong  central  gov- 
ernment. He  did,  indeed,  make  use  of  the  old  Republi- 
can institutions,  but  he  subordinated  them  all  to  his  own 
authority.  By  altering  the  oligarchic  tone  of  the  Senate 
and  by  concentrating  within  himself  the  powers  of  the 
highest  Roman  magistracies  he  sought  to  introduce  his 
own  supreme  rule  under  the  veil  of  old  forms  and  names. 
Greater  success  might  have  attended  his  efforts  had  the 
veil  been  less  transparent.  His  assumption  of  the  out- 
ward signs  of  royalty,  such  as  the  statue  that  he  had 
erected  to  himself  among  the  seven  kings,  and  the  head 
stamped  on  the  new  coinage,  completely  alienated  from 
his  side  all  who  were  in  any  way  attached  to  the  old 
traditions. 

Far  greater  success  attended  his  economic  reforms. 
While  his  successors  were  obliged  to  go  back  to  some 
extent  upon  his  political  ideas,  they  found  that  their 
main  chance  of  keeping  themselves  in  power  and  giving 
continuance  to  the  empire  was  to  carry  out  his  various 
economic  reforms. 

Caesar  had  already  perceived  that  the  greatest  evils 


io6  Greek  and  Roman  Period 

under  which  Rome  was  groaning  were  the  old  harshness 
of  the  laws  of  debt,  the  bad  distribution  of  land,  and  the 
ascendency  of  the  capitalist  class  that  was  draining  all 
the  resources  of  the  land.  To  these  evils  he  now  tried 
to  apply  a  remedy. 

With  regard  to  the  question  of  debt,  he  brought  in 
for  the  first  time  a  law  of  bankruptcy.  All  liability  to 
personal  bondage  was  removed,  and  the  debtor  was  al- 
lowed a  discharge  on  condition  of  his  making  over  to 
his  creditor  his  property  assessed  at  a  reasonable  valua- 
tion. Also,  the  interest  that  had  been  paid  was  to  be 
deducted  from  the  capital  sum.  This  compromise  was 
intended  to  give  a  chance  to  the  debtor  of  rising  from 
poverty  and  desperation,  and  to  the  creditor  a  satisfac- 
tion of  his  claims,  which,  though  perhaps  not  fully  ade- 
quate, was  better  than  none  at  all. 

He  then  grappled  with  the  agrarian  problem.  The 
great  landed  estates  had  been  in  the  possession  of  a  few, 
and  these  estates  had  been  worked  principally  by  slaves 
to  the  great  detriment  of  free  labor.  It  was  to  Rome 
that  flocked  all  the  flotsam  and  jetsam  of  humanity  un- 
able to  get  honest  work  in  the  country,  and  they  were 
now  loafing  about  the  streets  of  the  city.  It  was,  there- 
fore, Caesar's  intention  to  place  the  land  once  more  with- 
in the  reach  of  the  lower  classes.  In  pursuance  of  this 
he  distributed  large  allotments  of  land,  insisted  that  all 
estates  must  employ  a  certain  number  of  free  laborers, 
and  passed  a  law  that  the  capitalist  should  invest  part 
of  his  capital  in  agricultural  industries. 

This  last  provision  also  gives  us  a  clue  to  Caesar's 
policy  in  respect  to  the  capitalist.  Congestion  of  capital 
in  a  few  hands  is  one  of  the  worst  possible  evils.  It 
means  that  labor  and  productiveness  are  brought  to  a 
standstill.  Legislation,  however,  was  necessary  in  order 


Conspiracy  of  Catiline  107 

to  release  some  of  the  capital  that  lay  in  the  hands  of 
the  capitalists.  The  discouragement  of  usury,  the  im- 
position of  customs  duties  on  foreign-made  goods, 
thereby  compelling  the  wealthy  to  pay  to  the  State  part 
of  this  wealth,  and  the  necessity  of  paying  wages  to  the 
free  laborers  on  the  landed  estates  were  the  means  he 
adopted  for  this  purpose. 

While  Caesar  thus  tried  to  reduce  the  condition  of 
the  capitalist,  he  tried  to  relieve  the  squalid  misery  of 
the  poor.  Direct  relief  was  still  resorted  to,  but  in  a 
more  sagacious  way  than  before.  The  method  of  the 
Gracchi  had  been  distribution  without  any  discrimina- 
tion. The  result  had  been  disastrous.  Many  thousands 
of  idle  and  shiftless  persons  preferred  to  feed  on  the  State 
rather  than  to  work.  Caesar  now  established  investi- 
gators, or  inspectors,  who  were  to  inquire  into  the  real 
condition  of  the  applicants.  So  successful  was  this 
measure  that  the  number  of  applicants  for  relief 
dwindled  from  three  hundred  thousand  to  one  hundred 
and  fifty  thousand.  This  reduction  meant  that  one  hun- 
dred and  fifty  thousand  idle  persons  now  began  to  work 
and  to  contribute  to  the  general  wealth. 

At  the  same  time,  Caesar  tried  to  lessen  the  congested 
population  by  transplanting  eighty  thousand  citizens  into 
the  provinces,  and  founding  such  colonies  as  Corinth 
and  Carthage.  Unfortunately,  however,  his  untimely 
death  prevented  him  from  witnessing  the  completion  of 
this  part  of  his  reforms. 

For  those  who  remained  at  home,  employment  was 
found  of  such  a  nature  as  to  contribute  to  the  commer- 
cial prosperity  and  the  magnificence  of  the  State.  One 
great  barrier  to  internal  communication  had  been  the 
bad  condition  of  the  main  crossroads  leading  north  and 
south.  This  was  remedied  by  repairing  the  old  roads 


io8  Greek  and  Roman  Period 

and  constructing  a  new  thoroughfare  over  the  Apen- 
nines. Other  important  undertakings  were  the  widening 
of  the  streets  of  Rome,  and  the  construction  of  such 
buildings  as  the  Basilica  Julia  in  the  Forum,  and  certain 
reconstructions  in  the  Forum  itself. 

We  must  now  consider  the  way  in  which  Caesar  dealt 
with  the  urgent  problem  of  provincial  administration. 
It  must  be  remembered  that  by  curtailing  the  wealth  of 
the  capitalists  he  had  already  accomplished  a  great  deal. 
It  was  chiefly  the  capitalists,  who,  like  vampires,  had 
fed  on  the  wealth  and  the  very  life-blood  of  the  pro- 
vincials. It  was  they  who  had  greedily  gathered  up 
all  that  had  been  produced  by  the  hard  labor  of  the 
provincials;  and  so,  by  curtailing  their  ill-gathered  gains, 
by  preventing  them  from  having  anything  to  do  with 
the  colonies  except  by  themselves  becoming  permanent 
settlers,  Caesar  struck  at  the  very  root  of  *:he  evil  of 
provincial  administration. 

From  henceforth  there  were  to  be  no  more  tyranni- 
cal, independent  governors,  no  more  rapacious  tax-col- 
lectors. A  new  system  was  now  inaugurated  by  which 
the  taxes  were  gradually  adapted  to  the  relative  financial 
strength  of  the  provincials,  and  were  no  longer  diverted 
from  their  proper  channels. 

It  was  this  wholesome  policy  that,  perhaps  even  more 
than  anything  else,  contributed  to  the  durability  of  the 
empire  founded  by  Caesar.  The  provinces  were  under 
the  immediate  control  and  supervision  of  the  emperor. 
Whatever  governors  were  sent  out  were  mostly  his  lega- 
tees, absolutely  responsible  to  the  emperor.  Indeed  the 
government  of  the  provinces  had  now  become  almost 
paternal.  Of  this  we  find  ample  proof  in  the  corre- 
spondence in  after  years  between  the  Emperor  Trajan 
and  Pliny,  who  was  his  legate  in  Bithynia. 


Conspiracy  of  Catiline  109 

Such,  then,  was  the  nature  of  the  work  accom- 
plished by  Julius  Caesar.  Under  him  were  redressed  the 
economic  troubles  of  ages,  under  him  was  remodeled  the 
whole  material  structure  of  the  empire,  and  under  him 
was  inaugurated  that  material  prosperity  upon  which 
was  founded  that  political  empire  that  was  destined  to 
last  for  five  centuries. 

Future  emperors  only  carried  on  and  still  further  de- 
veloped the  structure,  whose  cornerstone  had  been  laid 
by  Caesar.  And  even  the  crimes  and  misgovernment 
of  such  men  as  Nero  and  Caligula  were  more  than  bal- 
anced by  the  material  prosperity  of  the  empire  as  a 
whole,  and  by  the  affection  of  the  distant  provinces. 

The  downfall  of  the  Roman  Empire  in  the  fourth 
and  fifth  centuries  was  mainly  owing  to  the  intervention 
of  another  element,  namely,  the  element  of  religion, 
which  is  sometimes  stronger  than  that  of  economics. 


PART  II 
MEDIEVAL    PERIOD 


INTRODUCTION 

UNDER  the  sway  of  the  Roman  emperors,  the  empire 
had  been  growing  rapidly,  both  in  extension  and  also  in 
unity  and  strength.  From  the  white  shores  of  Britain 
to  the  sands  of  Sahara,  the  Roman  flag  floated  peace- 
fully and  powerfully.  Everywhere,  throughout  the 
empire,  there  flourished  the  old  municipal  institutions  of 
ancient  Rome ;  everywhere  could  be  seen  broad  and  well- 
constructed  roads  that,  like  arteries,  connected  the  most 
distant  parts  of  the  empire. 

Even  more  conspicuous  was  the  internal  unity  that 
was  imparted  by  the  common  diffusion  of  all  that  went 
to  make  up  the  religious,  the  intellectual,  and  the  social 
life  of  man.  The  Roman  religion  had  penetrated  into 
all  parts,  and  in  every  town  the  altar  to  the  divine 
Caesar  had  become  an  active  symbol  of  unity.  Even  in 
remote  provinces,  the  little  children  in  the  elementary 
schools  were  trained  to  the  use  of  the  Latin  tongue, 
and  in  all  the  cities  the  public  baths,  the  theaters, 
and  other  buildings  of  a  like  character,  everything  testi- 
fied to  the  common  social  life  and  common  tastes  of  a 
now  united  people. 

By  the  third  century  Europe  had  been  brought 
together  in  a  way  which  had  never  been  seen  before  nor 
has  it  been  seen  since.  But  almost  as  soon  as  she  had 
attained  to  the  very  fulness  of  her  development  the  em- 
pire began  to  show  signs  of  disruption.  Certain  signs 
made  it  only  too  evident  that  the  emperor  was  no  longer 
able  to  maintain  his  supreme  authority  over  such  wide 
dominions.  In  fact,  they  were  fast  slipping  from  his 
grasp.  Vainly  did  Diocletian  and  Constantine  try  to 


H4  Medieval  Period 

maintain  the  unity  of  the  empire  by  instituting  a  hier- 
archy of  officials  amongst  whom  they  distributed  the 
administration  of  different  departments  and  provinces. 
Such  remedies  only  had  the  effect  of  hastening  the  end 
that  they  were  intended  to  prevent. 

Nor  was  this  all.  The  very  same  economic  disruptive 
tendencies  that  had  continually  menaced  the  Roman  Re- 
public now  began  to  threaten  the  later  empire.  Old 
problems,  such  as  the  agrarian  problem,  the  destruction 
of  the  fairly  well-to-do  middle  class,  and  the  burdens 
of  onerous  taxes,  badly  collected,  again  made  their  ap- 
pearance. 

It  was  this  that  caused  the  big  estates  gradually  to 
absorb  the  smaller  ones.  In  order  to  escape  the  burdens 
of  taxation  many  of  the  small  peasant  holders  gladly 
sold  their  holdings  to  some  richer  neighbors,  still,  how- 
ever, retaining  their  possession  but  tilling  the  land  for 
the  benefit  of  the  new  owner. 

We  find,  also,  that  the  fairly  well-to-do  middle  class 
was  also  fast  decaying.  This  was  partly  owing  to  the 
heavy  taxes  which  fell  chiefly  upon  the  middle  class 
and  partly  owing  to  the  abolition  of  freedom  of  trade 
and  industry.  Members  of  such  trade  associations  as 
those  of  bakers,  builders,  and  plumbers  were  forced  to 
remain  in  their  associations  so  that  they  should  not  evade 
taxation.  Even  the  unskilled  forms  of  labor  were  sub- 
ject to  the  same  treatment,  with  the  result  that  all  pro- 
ductive enterprises  were  suppressed  and  the  very  arms 
and  sinews  of  industry  were  literally  manacled  in  the 
fetters  of  slavery. 

Besides  these  economic  causes  of  decay,  there  must 
also  be  taken  into  account  the  disruptive  nature  of  such 
agents  as  immorality  and  irreligion.  Luxury  and  de- 
bauchery became  rampant  and  slew  their  hecatombs  of 


Introduction  115 

victims.  The  very  life-blood  of  the  nation  was  gradually 
oozing  away,  not  in  the  field  of  battle,  but  in  the  pleas- 
ures that  destroy  nations.  Even  the  faith  in  their  own 
gods  had  decayed.  To  believe  in  something  above  this 
material  world  is  better  than  to  believe  in  nothing  at  all. 
With  the  spread  of  absolute  infidelity,  all  moral  checks 
were  removed,  while  with  the  decay  of  the  worship  paid 
to  the  emperor  there  was  also  severed  one  of  the  ties 
that  had  bound  together  the  scattered  parts  of  the 
empire. 

The  empire  thus,  already  on  the  verge  of  decay, 
quickly  fell  before  the  myriads  of  the  barbarians  in  the 
fifth  century.  The  different  tribes  of  the  Visigoths, 
Ostrogoths,  Franks,  and  Burgundians,  like  some  great 
wave,  swept  upon  them. 

The  political  structure  of  the  empire  in  Western  Eu- 
rope was  indeed  undone  and  dismantled,  but  it  was  not 
altogether  destroyed.  Roman  law  still  remained  and 
was  respected  in  all  its  majesty.  Roman  traditions  also 
still  lingered,  especially  the  tradition  of  municipal  institu- 
tions, a  most  valuable  legacy,  which  was  to  prepare  the 
way  for  the  prosperous  towns  of  the  Middle  Ages.  Yet 
another  fragment  of  the  Roman  Empire  survived  in  the 
person  of  the  Eastern  emperor  at  Constantinople.  For, 
even  legally,  he  was  emperor  of  the  West  as  well  as  of 
the  East.  The  division  made  between  the  Western  and 
the  Eastern  empire  by  Diocletian  was  not  intended  to 
divide  the  imperium,  and  so,  in  reality,  the  emperor  of 
Constantinople  was  the  outward  symbol  of  the  unity 
of  the  whole  empire,  while,  as  we  shall  afterwards  see, 
Byzantine  influences  had  a  great  share  in  determining 
the  political  and  economic  destinies  of  Europe. 

The  process,  however,  of  the  blending  of  the  Teutonic 
and  Roman  elements  was  long  and  much  entangled. 


Ii6  Medieval  Period 

While  it  is  quite  certain  that  both  of  these  elements  are 
to  be  found  in  after-European  civilization,  it  is  uncer- 
tain which  of  the  two  elements  predominates,  and  in 
many  cases,  owing  to  the  elemental  discord  and  confu- 
sion of  the  early  Middle  Ages,  it  is  exceedingly  difficult 
to  trace  the  different  steps  of  the  process. 

While,  however,  objects  begin  to  appear  with  dis- 
tinct shape,  one  can  clearly  discern  certain  influences  at 
work,  some  of  them  making  for  centralization,  others 
tending  toward  decentralization. 

The  memory  of  the  Roman  Empire,  the  influence  of 
the  Papacy  and  of  the  Christian  Church,  and  the  foun- 
dation of  the  great  Prankish  monarchy,  covering  France 
and  Germany,  tended  to  bring  Europe  together.  In 
fact,  the  Carolingian  Empire  seemed,  at  one  time,  to  be 
acquiring  almost  the  same  extension  as  that  which  had 
been  enjoyed  by  the  empire  of  the  pagan  Caesars.  In 
the  Holy  Roman  Empire  the  unitive  force  of  the  tem- 
poral ruler  was  joined  to  that  of  the  spiritual  ruler,  and 
these  different  centralizing  influences,  being  fused 
into  one,  were  thus  rendered  powerful  with  a  double 
force. 

On  the  other  hand,  there  were  forces  of  a  more  de- 
centralizing character,  forces  whose  activity  exercised 
itself  rather  in  small  local  units  of  area.  These  influ- 
ences were  mainly  economic.  The  relations  between  the 
serf  and  his  master,  and  the  industrial  and  municipal  ac- 
tivities of  the  towns,  tended  rather  in  the  direction  of 
decentralization. 

And  yet,  there  was  harmony  between  the  centripetal 
and  centrifugal  tendencies.  They  were  both  necessary 
from  the  development  of  modern  Europe.  If  we  wish  to 
illustrate  by  way  of  comparison  we  might  think  of  the 
construction  of  a  living  body  in  which  the  different  cells 


Introduction  117 

and  tissues  come  into  existence  one  by  one,  each  grad- 
ually receiving  its  own  shape  and  function,  while  at  the 
same  time  all  are  gradually  acted  upon  and  endowed 
with  one  common  purpose  of  action  by  the  ruling  prin- 
ciple of  life. 

Such  then  is  the  relation  between  the  economic  and  the 
political  element  in  the  early  formation  of  Europe.  We 
must  now  consider  a  little  more  closely  the  different  eco- 
nomic activities  that  especially  distinguish  the  early  Mid- 
dle Ages.  These  may  be  distinguished  under  the  fol- 
lowing headings:  (a)  the  feudal  system;  (b)  the  towns; 
(c)  the  guilds  and  crafts;  (d)  the  industries  and  gen- 
eral production  of  wealth;  (e)  the  distribution  of 
wealth. 

After  these  have  been  studied  in  detail,  it  will  be 
easier  to  see  how  the  economic  element  molded  the 
political  destinies  of  Europe  during  the  Middle  Ages. 


CHAPTER  I 

THE   FEUDAL  SYSTEM 

FEUDALISM  is  a  system  in  which  political  power  is 
connected  with  the  holding  of  land.  A  man,  that  is  to 
say,  enjoys  so  much  administrative  and  political  power 
because  he  happens  to  have  just  so  much  land,  and  the 
more  extensive  the  land  he  holds,  so  much  more  exten- 
sive becomes  his  political  jurisdiction. 

It  will  be  helpful  to  our  present  purpose  if  we  analyze 
feudalism  into  its  essential  elements.  These  are:  (a) 
the  real  element;  (b)  the  personal  element;  (c)  im- 
munity, which  is  the  result  of  the  combination  of  the  real 
and  personal  elements. 

a.  The  real  element.  This  is  sometimes  called  the 
benefice,  and  consisted  of  a  piece  of  land  rented  by  one 
man  to  another  in  return  for  the  fulfilment  of  certain 
conditions.  The  most  common  and  the  most  essential 
condition  was  the  granting  of  military  service,  or  the 
agreement  to  accompany  the  landlord  to  the  field  of 
battle  for  a  certain  definite  time.  Military  service,  how- 
ever, was  not  the  only  condition.  It  often  existed  in 
combination  with  others  of  a  financial  nature.  Thus,  the 
tenant  had  to  pay  a  sum  of  money  when  his  eldest  son 
was  going  to  be  knighted  and  his  eldest  daughter  mar- 
ried. Other  financial  burdens  laid  upon  the  tenant  were 
the  relief,  or  a  sum  of  money  paid  by  the  heir  coming 
into  possession  of  the  estate,  and  the  fine  upon  aliena- 
tion, which  was  the  sum  of  money  that  had  to  be  paid  if 
the  tenant  sold  or  gave  his  fief  to  another. 

So  far,  the  land  contract  between  the  landlord  and 
tenant  seems  to  be  of  the  same  essence  as  in  our  modern 


The  Feudal  System  119 

system.  Certainly,  the  rent  was  of  a  more  varied  na- 
ture, and  could  be  discharged  in  kind  as  well  as  in  money, 
but  that  does  not  affect  the  nature  of  the  contract  between 
the  landlord  and  tenant.  There  were,  however,  two  other 
conditions  annexed  to  the  renting  of  the  land  that  show 
we  are  no  longer  dealing  with  a  mere  contract  of  rent. 
These  conditions  were  that  the  landlord  had  the  guar- 
dianship of  a  minor  heir  of  his  tenant,  and  that  he  had 
the  right  to  dispose  of  his  female  ward  in  marriage. 

Evidently  these  two  powers  of  the  feudal  landlord 
show  that  he  was  something  else  besides  a  mere  land- 
lord, and  this  brings  us  to  the  second  element. 

b.  The  personal  element,  or  fealty.    In  feudalism  the 
tenant  became  the  vassal  of  his  landlord.     He  became 
bound  to  his  landlord  by  peculiar  personal  obligations, 
and,  as  the  outward  sign  of  this,  the  would-be  tenant 
had  to  swear  fealty  to  his  future  lord,  who  in  his  turn 
formally  invested  his  tenant  with  his  fief.    Personal  ties 
were  thus  created  between  the  lord  and  his  tenant  such 
as  are  to  be  found  nowhere  in  our  modern  times.    Such 
ties   remind  one   of  the   connection  between  the   old 
Roman  Patrician  and  his  client.    They  were,  however, 
of  a  somewhat  different  nature  and  were  much  more 
definite.     The  lord  had  to  protect  his  vassal  on  all  oc- 
casions, and,  as  times  went  on,  this  protection  was  care- 
fully explained  and  set  forth  in  detail.    The  tenant,  on 
his  part,  had  to  be  faithful  to  his  lord,  especially  in  time 
of  war. 

It  was  not  long  after  that  there  sprang,  from  the 
union  of  the  real  and  personal  elements,  a  third  element. 

c.  Immunity.     By  immunity  is  meant  that  the  land- 
lord enjoyed  political  and  judicial  jurisdiction  over  his 
tenant.    In  other  words,  the  benefice  was  immune  from 
any  jurisdiction  outside  that  of  the  lord.    The  lord,  ex- 


I2O  Medieval  Period 

cept  in  England,  could  frame  laws  and  statutes  for  his 
tenants,  and  could  give  or  refuse  consent  to  the  promulga- 
tion within  his  domain  of  the  king's  law.  He  also  enjoyed 
civil  and  criminal  jurisdiction,  and  in  this  court  could 
even  pass  sentence  of  death.  It  is  important  to  note,  how- 
ever, that  in  practice  this  power  was  protected  from  ar- 
bitrary misuse  by  certain  well-defined  forms  of  procedure 
to  which  the  lord  was  supposed  to  adhere  faithfully. 

Having  considered  very  briefly  the  nature  of  feudal- 
ism, and  its  constitutional  elements,  we  must  now  con- 
sider feudalism  more  closely  in  its  economic  bearings. 
We  shall  thus  see  more  in  detail  the  importance  of  the 
economic  element  in  medieval  history. 

The  feudal  system,  both  in  its  nature  and  in  its  origin, 
was  economic.  The  very  keystone  was  the  possession  of 
wealth  in  the  form  of  land.  As  in  Solon's  time  the  pos- 
session of  so  many  measures  of  wheat  meant  precisely  so 
much  social  and  political  status,  so  in  feudal  times  it 
was  the  land  that  conferred  position  and  dignity. 

Also  the  origin  of  feudalism  was  economic.  It  was 
to  safeguard  whatever  wealth  they  had  that  the  holders 
of  small  property  commended  themselves  as  vassals  to 
the  protection  of  some  one  more  powerful  than  them- 
selves. When  the  Danes  were  sweeping  over  the  whole 
of  Europe,  the  poor  villagers  were  only  too  glad  to  hud- 
dle for  protection  around  the  walls  of  the  medieval 
castle  of  their  overlord.  And,  conversely,  it  was  the 
financial  necessities  of  the  lord  that  made  him  only  too 
glad  to  accept  the  services  of  his  vassal,  who  would 
pay  rent  and  work  his  land  for  him. 

And  this  system,  so  essentially  economic,  affected  the 
very  heart  of  medieval  society.  It  affected  the  whole 
condition  of  Europe  from  the  administrative,  political, 
financial,  and  military  side ;  it  also  affected  the  social  ele- 


The  Feudal  System  121 

ment  by  creating  the  classes  and  the  caste  systems  of 
medieval  society,  and  finally,  even  from  the  ecclesiastical 
point  of  view,  it  had,  as  we  shall  see,  an  enormous  in- 
fluence, both  for  good  and  evil. 

From  the  administrative  point  of  view,  feudalism 
tended  to  diminish  the  central  authority  of  the  king,  and 
substitute  for  it  the  local  authority  of  the  magistrate  and 
powerful  baron.  According  to  the  old  law,  neither  the 
king  could  put  a  bar  on  the  baron's  land,  nor  could  the 
baron  put  a  bar  on  the  king's  land.  It  seemed  as 
though  government  were  being  carried  on  by  the  differ- 
ent powerful  vassals  on  some  cooperative  scheme.  For, 
as  we  have  already  said,  the  king  could  not  promulgate 
any  law  within  his  vassal's  domain  without  the  vassal's 
consent. 

This  tendency  to  independence  on  the  part  of  the 
political  element,  so  intimately  bound  up  with  the  local 
territorial  units,  resulted  in  greatly  retarding  the  growth 
of  royal  power  in  France  and  Germany.  In  France, 
it  was  only  by  the  time  of  Louis  XI  that  the  authority 
of  the  Crown  began  really  to  assert  itself  over  that  of 
the  nobles,  while  in  Germany,  feudalism  put  off  the 
unification  of  the  country  until  the  time  of  Bismarck. 

In  England,  however,  we  find  an  exception.  William 
the  Conqueror  saw  how  detrimental  to  the  Crown  had 
been  the  decentralizing  forces  of  the  Continental  feu- 
dalism. He  was  determined,  therefore,  from  the  very 
beginning  to  curb  by  constitutional  means  this  dangerous 
power  and  to  crush  the  rivalry  on  the  part  of  the  feudal 
barons.  This  he  did  most  effectually  by  insisting  that 
all,  even  the  smallest  landowners,  should  take  an  oath 
of  allegiance  and  fealty  directly  to  himself.  This  was  in 
striking  contrast  to  the  prevailing  practice  on  the  Conti- 
nent, where  the  minor  vassals  took  the  oath  only  to  their 


122  Medieval  Period 

immediate  lord.  Hence  the  king  could  only  call  on  the 
lesser  vassals  indirectly  through  the  willing  cooperation 
of  the  greater  barons,  while  in  England  the  lesser  vassals 
were  placed  in  direct  subordination  to  the  king,  and  thus 
the  power  of  the  barons  was  checked,  even  from  the  very 
beginning. 

On  the  Continent,  however,  were  certain  forces  that 
were  opposed  to  the  decentralizing  tendencies  of  the 
forceful  vassals,  and  first  among  them  was  the  over- 
shadowing authority  of  the  king  as  such.  This  author- 
ity was  different  from  that  which  he  exercised  in  his  own 
domain.  It  extended  over  the  whole  kingdom,  though 
its  precise  nature  would  be  hard  to  determine.  Then 
there  were  held  certain  congresses  and  especially  the 
councils  of  the  Church.  In  these  meetings  a  common 
plan  of  action  was  often  determined  upon,  which  saved 
the  country  from  foreign  invasion  and  from  constant 
internal  anarchy. 

On  the  whole,  however,  the  great  tendency  of  feudal- 
ism was  toward  decentralizing  all  political  activity 
and  to  delaying  the  formation  of  centralized  monarchies. 

Judicially,  also,  the  feudal  element  exercised  a  very 
decentralizing  influence.  Thus,  in  France,  as  late  as 
J363,  we  find  the  king  admitting  that  his  own  court, 
namely,  the  court  at  Paris,  had  jurisdiction  only  over 
four  kinds  of  cases,  namely,  those  involving  the  peers 
of  France,  prelates,  chapters  of  the  royal  domain, 
and  appeals  from  royal  officials.  Outside  these  four 
classes,  the  lord  had,  over  his  own  domain,  jurisdiction, 
both  civil  and  criminal. 

Only  in  England  did  this  decentralizing  influence  of 
feudalism  have  no  effect  on  the  political  system.  William 
the  Conqueror,  in  order  to  lessen  the  power  of  the  feudal 
barons,  took  away  from  them  nearly  all  political  power. 


The  Feudal  System  123 

This  he  still  left  in  the  possession  of  such  local  courts 
as  the  shire  and  hundred,  while  in  after  years  the  circuit 
courts  and  the  king's  supreme  courts  monopolized  all  the 
important  powers. 

Feudalism,  however,  affected  law  in  other  ways,  be- 
sides tending  to  decentralize  its  administration.  The 
principle  of  primogeniture,  by  which  the  oldest  son  suc- 
ceeded to  the  estate,  and  the  principle  of  entail,  by  which 
an  estate  is  tied  down  in  perpetuity  only  to  a  certain 
class  of  heirs,  are  the  result  of  feudalism.  Moreover, 
the  fundamental  distinction  between  real  and  personal 
property,  and  the  peculiar  legal  treatment  of  the  former, 
are  owing  to  the  same  feudal  influence.  Even  the  pecu- 
liar condition  of  our  modern  will  may  be  traced  to  the 
same  cause.  For  it  was  feudal  primogeniture  that  first 
did  away  with  the  notion  that  the  property  of  the  de- 
ceased had  to  be  distributed  according  to  the  shares  pre- 
scribed by  Roman  law. 

We  must  now  consider  the  influence  of  feudalism  on 
its  financial  side. 

The  different  financial  burdens  incurred  by  the  feudal 
tenant  have  already  been  enumerated.  Taken  alto- 
gether, they  must  have  amounted  to  a  considerable  sum, 
especially  on  the  larger  estates.  Now,  the  king  was  the 
largest  landowner  in  the  kingdom,  and  the  feudal  reve- 
nues that  he  derived  from  it  must  have  been  correspond- 
ingly great.  In  fact,  they  constituted  both  the  king's 
own  private  fortune,  and  also  the  fund  with  which  he 
was  enabled  to  carry  on  the  work  of  administration. 

In  early  medieval  times,  therefore,  the  feudal  reve- 
nues of  the  king  took  the  place  of  any  general  system  of 
taxation.  Indeed,  it  was  only  after  a  long  struggle  that 
monarchical  taxation  succeeded  in  supplanting  the  feudal 
revenues.  Only  about  the  time  of  the  twelfth  century, 


124  Medieval  Period 

chiefly  on  account  of  the  needs  of  the  Crusades,  did  the 
king  succeed  in  levying  any  general  tax  extending  outside 
his  own  domain.  In  France,  the  struggle  was  exception- 
ally severe.  Only  indirectly  did  the  king  succeed  in  es- 
tablishing a  central  system  of  taxation,  acquiring  one  by 
one  the  outlying  provinces,  and  then  disposing  of  them 
as  his  own  personal  estates. 

Yet  here,  also,  we  find  an  exceptional  anomaly  in 
England.  Besides  the  ordinary  aids  for  marrying  the 
king's  oldest  daughter,  knighting  his  oldest  son,  and  ran- 
soming the  king's  person  when  taken  prisoner,  there 
were  also  extraordinary  aids,  which  were  levied  only  for 
extraordinary  purposes.  It  was  these  extraordinary 
aids  that  developed  in  the  course  of  time  into  a  system 
of  regular  taxation.  Thus,  so  far  from  there  being  a 
continued  conflict  in  England  between  the  feudal  finan- 
cial system  and  a  uniform  system  of  taxation,  we  find 
that  the  former  gradually  and  harmoniously  led  up  to 
the  latter. 


THE  MILITARY  ELEMENT  OF  SOCIETY 

This  also  was  profoundly  affected  by  feudalism. 
There  were  no  professional  standing  armies.  Instead, 
there  were  the  feudal  levies.  Each  baron  had  around 
him  his  own  personal  retainers  sworn  to  do  him  feudal 
service,  while  the  king  also  could  command  the  military 
service  of  the  vassals  on  his  own  domain.  But  on  the 
Continent  the  king  could  call  upon  the  subjects  of  his 
barons  only  indirectly,  by  appealing  to  the  barons. 
Naturally  this  was  often  disastrous  for  the  welfare  of 
the  nation,  and  it  opposed  a  strong  material  obstacle  to 
the  extension  of  the  royal  authority. 

On  the  Continent  this  lasted  for  ages,  but   in  Eng- 


The  Feudal  System  125 

land  the  strong  policy  of  the  kings  quickly  put  down 
the  military  power  of  the  barons.  During  the  dispute 
between  Stephen  and  Matilda  for  the  possession  of  the 
throne,  the  castles  of  the  barons  were,  it  is  true,  a  source 
of  oppression,  cruelty,  and  anarchy.  But  under  King 
Henry  II,  many  of  the  strong  castles  were  razed  to  the 
ground,  and  for  many  years  after  his  time  the  barons, 
so  far  from  being  centers  of  discord,  rather  posed  as 
the  champions  of  the  people's  rights,  and  of  a  system 
of  well  organized  government. 

In  Europe,  however,  the  military  power  of  the  nobles 
ever  exercised  a  strong  decentralizing  influence.  In 
Germany  and  Italy  they  postponed  the  unification  of  the 
State  until  the  nineteenth  century,  while  in  France  it  took 
the  king  many  years  of  patient  toil  and  diplomacy  in 
order  to  subdue  the  turbulent  barons  of  the  South. 

Socially,  the  influence  of  feudalism  was  all-powerful. 
It  caused  the  division  of  society  into  castes,  one  rising 
above  the  other.  There  were  the  upper  classes  and  the 
lower  classes,  the  former  consisting  of  the  nobility  and 
clergy,  and  the  latter  consisting  of  the  serfs  and  vil- 
leins.* Even  this  distinction  was  thoroughly  economic. 
It  rose  entirely  from  the  land.  Thus,  the  possession  of 
certain  estates  gave  to  the  owners  certain  distinct  privi- 
leges, the  possession  of  certain  portions  of  land  would 
render  their  owners  villeins,  while  again  other  portions 
of  land  would  reduce  their  owners  to  the  condition  of 
serfs. 

Continental  Europe  was  thus  divided  by  feudalism 
into  horizontal  sections.  The  main  divisions  were  be- 
tween the  upper  and  lower  strata  of  society,  not  between 
nations.  Indeed,  there  was  far  more  intercourse  and 

*A  villein  was  just  one  step  above  a  serf.     Though  he  was  not  bound  to  perform 
certain  services,  such  as  plowing  and  harvesting,  yet  he  was  tied  down  to  the  soil. 


126  Medieval  Period 

good  fellowship  between  an  English  knight  and  a 
French  knight  than  between  an  English  knight  and  an 
English  peasant.  Hence,  it  is  easy  to  see  how  this  in- 
fluence of  feudalism  must  also  have  affected  the  main 
currents  of  European  politics.  It  tended  to  broaden  the 
area  of  the  different  struggles  and  agitations,  and  thus 
we  are  enabled  better  to  understand  how  such  move- 
ments as  the  struggle  between  the  empire  and  the 
Papacy,  and  the  Crusades,  were  able  to  draw  into  their 
vortex  such  enormous  areas  of  territory. 

Finally,  the  influence  of  feudalism  made  itself  felt 
also  in  the  Church.  When  Europe  was  threatened  both 
by  the  Danes  and  by  internal  anarchy,  many  of  the 
prelates,  following  the  general  example,  commended 
themselves  and  their  possessions  to  the  protection  of 
some  powerful  lord.  Relations,  essentially  feudal,  were 
established  between  them,  only  that  the  conditions  of 
tenure  were  different.  Yet,  even  by  ecclesiastics,  military 
service  was  often  granted  in  spite  of  the  prohibitions  of 
Popes,  many  of  the  bishops  insisting  on  putting  on 
armor  and  appearing  on  the  field  of  battle. 

The  Church  thereby  gained  the  advantage  of  protec- 
tion, but  it  lost  in  other  ways.  Bishops  and  prelates 
often  became  mere  feudal  magnates.  While  holding  the 
spiritual  care  of  souls,  they  were  also  in  possession  of 
land  with  certain  obligations  attached,  and  with  the 
necessity  of  performing  certain  personal  obligations 
toward  their  lay  lords. 

It  was  this  economic  element  entering  into  the  Church 
that  caused  so  many  abuses  in  the  time  of  Hildebrand. 
Many  of  the  clergy  married  in  order  to  perpetuate  the 
estates  in  their  families,  and  only  too  frequently,  as  we 
have  already  said,  they  sank  into  the  position  of  purely 
feudal  magistrates.  Indeed,  centuries  elapsed  before  the 


The  Feudal  System  127 

Church  could  entirely  free  herself  from  the  worldly  ele- 
ment that  had  then  entered  into  her  constitution. 

It  was  the  same  cause  that  brought  about  the  investi- 
ture contest  between  empire  and  Papacy.  While  the 
temporal  ruler  maintained  that  the  prelate  was  a  feudal 
magistrate,  and,  therefore,  should  be  invested  by  him 
with  the  ring  and  crozier,  the  Pope,  on  the  other  hand, 
maintained  that  this  was  his  right,  since  the  prelate,  hav- 
ing the  care  of  souls,  was  subordinate  to  his  jurisdiction. 

Such  were  the  main  influences  of  feudalism  on  me- 
dieval society.  Almost  every  single  branch  of  human 
activity  was  dominated  by  the  feudal  element,  and  it 
seems  almost  incredible  that  such  a  simple  thing  as  the 
holding  of  land  should  have  had  such  an  abiding  in- 
fluence on  society  and  on  the  welfare  of  each  and  every 
individual. 


CHAPTER  II 

THE   TOWNS 

IN  THE  history  of  ancient  Greece  and  Rome  the  town 
or  city  had  ever  played  a  most  important  part.  In 
fact,  the  men  of  those  times  could  not  conceive  a  State 
that  was  not  identical  with  the  city.  Hence,  the  whole 
political  interest  of  the  ancient  and  classic  periods  of 
history  centers  around  what  is  significantly  called  the 
City-State. 

Also  in  medieval  times  the  city  or  town  was  destined 
to  play  a  very  important  part.  No  longer,  however,  did 
the  towns,  like  isolated  cells,  live  apart  from  one  another, 
each  revolving  in  the  sphere  of  its  own  activity.  They 
now  began  to  form  the  tissue  of  a  greater  whole.  Nor  on 
this  account  was  their  importance  diminished.  For  the 
medieval  towns  were  a  most  essential  factor  in  the  for- 
mation of  modern  Europe,  and  it  was  through  them  that 
the  economic  influence  of  trade  and  commerce  exerted 
itself  on  the  power  of  monarchs  and  nobles,  and  in  the 
direction  of  a  limited  and  constitutional  central  govern- 
ment. 

The  word  "town"  means  a  wall,  and  the  medieval 
meaning  attached  to  the  word  is  that  of  a  group  of  per- 
sons who  live  together  and  are  surrounded,  for  the  sake 
of  protection,  by  a  wall.  Some  of  the  medieval  towns 
were  formed  by  the  spontaneous  action  of  the  towns- 
people themselves ;  others  were  formed  by  the  deliberate 
will  of  powerful  princes.  Thus,  for  example,  one  of  the 
devices  of  Henry  the  Fowler  for  settling  a  country  and 
protecting  it  from  foreign  invasion  was  that  of  building 
walled  towns. 


The  Towns  1 29 

Soon  these  towns  began  to  thrive  and  grow  prosper- 
ous. It  was  not  possible  for  a  number  of  people  to  live 
close  together  without  some  emulation,  or  rather,  with- 
out some  cooperation  and  division  of  labor.  The  results 
showed  themselves  in  greater  production,  while  the 
towns  soon  became  centers  of  commercial  activity. 
Hitherto  the  village  community  had  been  the  center; 
now  it  was  the  larger  area  of  the  town;  and  this,  again, 
was  destined  to  lead  up  to  the  still  wider  area  of  the 
State. 

The  inhabitants  of  the  towns,  however,  soon  found 
themselves  impeded  in  their  commercial  activities  by 
their  subjection  to  the  lord  or  bishop  under  whose  juris- 
diction they  happened  to  reside.  Soon,  therefore,  an 
effort  was  made  on  the  part  of  the  town  to  obtain  its 
release  from  arbitrary  jurisdiction  and  arbitrary  finan- 
cial burdens.  All  over  Europe,  during  the  tenth, 
eleventh,  and  twelfth  centuries,  there  was  going  on  an 
increasing  conflict  on  the  part  of  the  towns  to  obtain 
this  recognition  of  their  independence  as  separate  com- 
munes. Partly  by  bargaining,  partly  by  force,  the 
towns  slowly  gained  the  victory.  The  freedom  that  they 
obtained  might  have  been  greater  in  some  cases  than  in 
others,  but  the  general  effect  was  to  emancipate  the 
towns  from  the  hampering  fetters  of  feudalism. 

In  order  to  see  more  in  detail  the  influence  of  the 
towns  on  the  political  destinies  of  Europe,  it  will  be 
helpful  to  consider  the  rise  of  the  towns  in  the  different 
countries  that  were  at  that  time  of  growing  importance. 
Such  a  brief  survey  will  show  in  clearer  outline  how  the 
power  of  the  economic  element  acted  on  politics  through 
the  leverage  of  the  towns. 

In  France,  by  the  time  of  Louis  VI,  many  towns  had 
already  obtained  their  charter  of  independence,  and 


130  Medieval  Period 

already  it  came  to  be  seen  that  the  towns  were  centers 
of  refuge  against  the  oppression  of  feudal  magnates. 
Conspicuous  among  these  towns  were  Noyon,  Laon,  and 
Amiens ;  while,  besides  these,  must  also  be  reckoned  the 
towns  on  the  royal  domain. 

All  during  the  reigns  of  Louis  VI,  Louis  VII,  and 
Philip  Augustus,  the  process  of  emancipation  continued. 
The  movement  began  in  the  northern  parts  of  France, 
and  from  there  spread  also  to  the  villages  and  towns 
under  ecclesiastical  control.  The  kings  themselves  found 
it  useful  to  form  an  alliance  with  the  towns  as  a  counter- 
poise to  the  power  of  the  feudal  barons.  It  was  the  king 
who  gave  them  protection  against  any  oppression,  each 
town  obtaining  a  royal  officer  for  that  purpose;  and 
already  by  the  time  of  Louis  VI  we  find  the  French 
king  so  far  asserting  his  influence  as  to  claim  suzerainty 
over  all  the  chartered  towns.  Philip  Augustus,  while 
repressing  the  revolutionary  tendencies  of  the  communes, 
boldly  proclaimed  himself  their  patron  and  champion. 
By  superintending  their  material  means  of  defense,  and 
by  encouraging  their  industries,  he  considerably  has- 
tened the  communal  movement.  Most  significant  is  a 
certain  clause  in  one  of  the  charters  which  declares  that, 
"if  any  stranger  commits  a  wrong  on  the  inhabitants  of 
the  towns,  the  majority  of  the  people  shall  destroy 
the  house  of  the  offender,  but  if  the  offender  shall  be  a 
king's  vassal,  then  he  shall  not  be  allowed  to  enter  the 
town  until  he  has  done  amends." 

Such  towns  had  great  privileges.  They  were  allowed 
to  hold  common  property,  to  use  the  common  seal  of  the 
corporation,  and  to  let  their  children  marry  without  the 
payment  of  any  fine  for  obtaining  the  lord's  permission. 
With  the  exception  of  the  payment  of  a  definite  and 
limited  rent,  they  were  no  longer  bound  down  to  their 


The  Towns  131 

lord,  and  were  not  even  obliged  to  help  him  in  times  of 
war.  Internal  freedom  was  also  secured  to  them  by 
their  exemption  from  the  jurisdiction  of  royal  and 
territorial  judges,  and  freedom  to  elect  their  own 
magistrates. 

The  French  towns  were  thus  pledged  to  the  support 
of  the  throne  by  the  strongest  of  ties,  namely,  that  of 
self-interest.  While  the  king,  on  his  side,  lent  them  the 
aid  of  his  central  authority  against  the  aggressions  of 
the  barons,  the  towns,  on  their  side,  became  so  many 
different  centers  for  expanding  the  royal  influence 
throughout  the  kingdom. 

In  Germany,  the  growth  of  towns  began  early  but 
was  not  so  rapid  as  that  of  the  French  towns.  Some  of 
them  originally  depended  upon  the  emperor,  others 
were  in  the  hands  of  the  dukes,  counts,  and  other  mem- 
bers of  the  German  aristocracy.  Worms  and  Cologne 
were  the  first  to  receive  recognition  by  the  imperial  en- 
franchisement of  the  inferior  artisans.  Under  Fred- 
erick, there  were  elected  councils  of  citizens  who,  at 
first,  were  merely  the  assistants  to  the  imperial  vicar  or 
bailiff.  But  during  the  period  of  the  decline  of  the 
House  of  Hohenstauffen  not  only  did  the  townsmen 
frequently  succeed  in  expelling  the  bailiff,  but  they  also 
set  up  an  autonomous  government  of  their  own.  Finally 
by  the  time  of  Rudolf  of  Hapsburg,  in  1291,  the  towns 
had  secured  a  place  in  the  Imperial  Diet,  and  were  thus 
placed  on  a  footing  superior  even  to  that  of  the  knights. 

The  power  and  opulence  of  many  of  the  German 
towns  became  afterwards  closely  connected  with  the  rise 
of  Venice  and  the  great  trade  routes  from  the  East. 
Venice  was  the  converging  center  of  the  trade  routes 
from  the  East,  and  it  was  from  Venice  that  the  merchan- 
dise was  carried  up  the  waters  of  the  Rhine,  enriching 


132  Medieval  Period 

the  towns  upon  its  banks.  In  fact,  in  the  political  dis- 
integration of  Germany,  the  towns  occupied  as  strong  a 
position  as  that  of  the  bishops  or  barons.  Frederick  II 
saw  in  this  a  danger  to  his  own  authority.  He  endeav- 
ored to  check  the  rising  tide  by  curtailing  their  jurisdic- 
tion, and  taking  away  from  the  towns  the  power  of  har- 
boring fugitives.  Such  petty  enactments,  however,  were 
fruitless,  and  the  towns  grew  more  and  more  in 
importance. 

They  also  showed  their  development  by  drawing  up 
their  own  local  codes  of  laws  or  customs.  Many  of 
these  were  of  very  ancient  origin  and  were  framed 
chiefly  with  a  view  to  the  protection  of  commerce  and 
trade. 

Individually  the  German  towns  were  strong,  but  col- 
lectively they  were  still  stronger.  For  they  formed 
themselves  into  groups  and  thus  became  strong  enough 
to  declare  war  and  peace  and  to  make  separate  treaties 
with  foreign  States.  The  two  strongest  of  these  leagues 
were  the  League  of  the  Rhine,  which  comprised  most  of 
the  towns  in  southern  Germany,  and  the  Hanseatic 
League,  containing  most  of  the  north  German  towns. 
The  League  of  the  Rhine  contained  no  fewer  than  sixty 
cities,  but  the  Hanseatic  League  was  even  still  more 
powerful.  The  successful  wars  which  it  waged  with 
Sweden,  Norway,  and  Denmark,  and  the  treaties  which 
it  concluded  with  England  and  Flanders  sufficiently 
demonstrate  the  importance  of  the  League.  Nor  was 
this  surprising  when  we  take  into  account  the  extent  and 
complete  solidarity  of  the  League. 

It  not  only  comprised  all  the  important  cities  in  north 
Germany  and  along  the  Baltic,  but  it  even  had  factories 
in  such  widely  scattered  places  as  London  and  Novgo- 
rod. Liibeck  was  at  the  head  of  the  League.  In  this  city 


The  Towns  133 

were  kept  the  treasury  and  archives,  and  here  also  met 
both  the  regular  and  extraordinary  assemblies.  Some 
idea  of  the  minuteness  and  rigor  of  its  regulations  may 
be  gauged  from  the  fact  that  its  factors  and  clerks  had 
to  observe  celibacy.  Doubtless,  such  a  regulation  may 
seem  to  us  extreme,  but  it  serves  to  illustrate  the  power 
of  the  system  that  pervaded  the  shops  and  factories  of 
the  League. 

The  German  towns  were  the  most  united  and  cohesive 
section  of  Germany.  Their  greatest  wealth  and  political 
influence  excited  both  the  hopes  and  fears  of  German 
princes.  And  had  it  not  been  for  the  decline  of  the  old 
trade  routes  in  the  sixteenth  century,  they  might  have 
hastened  the  process  of  the  unification  of  Germany. 

If  we  turn  to  Italy,  especially  to  its  northern  prov- 
inces, we  find  similar  evidence  of  the  growth  and  politi- 
cal power  of  the  towns. 

Partly  owing  to  the  natural  fertility  of  the  soil,  partly 
owing  to  their  unrivaled  manufactures,  the  towns  of 
Lombardy  soon  became  both  numerous  and  thriving. 
Among  them,  Milan  rapidly  took  the  lead.  Some  idea 
of  her  size  may  be  gathered  from  her  population,  which 
in  1288  amounted  to  two  hundred  thousand,  while  of 
these  there  were  eight  thousand  gentlemen,  six  hundred 
notaries,  two  hundred  doctors,  and  eighty  schoolmasters. 
But  other  towns,  like  Pavia  and  Pisa,  also  grew  in 
importance. 

In  1051,  the  importance  of  Pisa  may  be  judged  from 
the  fact  that  Emperor  Henry  IV  promised,  amongst  its 
other  privileges,  not  to  nominate  a  new  marquis  over 
Tuscany  without  its  consent. 

The  government  of  such  towns  was  practically  an  oli- 
garchy who  ruled,  however,  in  the  name  of  the  people. 
Their  magistrates,  called  consuls,  and  varying  in  num- 


134  Medieval  Period 

her,  were  elected  by  the  people.  Sometimes  there  were 
even  as  many  as  twenty  consuls.  Then,  under  the  con- 
suls were  two  councils.  One  of  these,  which  was  smaller 
in  number,  formed  a  kind  of  town-senate,  and  met  in 
secret,  while,  on  very  important  occasions,  the  general 
council  of  the  whole  people  was  assembled.  Besides 
these  units  of  government,  there  was  also,  after  the 
time  of  Frederick  Barbarossa,  a  podesta,  or  dictator, 
who  acted  as  supreme  judge  and  who  was  expected  to 
restore  order  amid  the  furious  factions  and  party  strifes. 
A  stranger  was  generally  chosen  for  this,  perhaps  from 
some  other  town,  as  it  was  expected  he  would  show 
greater  impartiality. 

It  was  not  long  before  the  towns  had  an  opportunity 
of  showing  forth  not  only  their  individual  love  of  free- 
dom, and  their  material  wealth  and  splendor,  but  also 
their  collective  strength. 

The  occasion  was  furnished  by  the  war  between  the 
towns  of  Lombardy  and  the  Emperor  Frederick  Bar- 
barossa. Milan,  in  spite  of  the  emperor's  prohibition, 
continued  to  persecute  its  neighbors  in  the  town  of  Lodi. 
Frederick  employed  force,  and  the  result  was  a  pro- 
tracted siege  of  Milan  which  ended  in  the  victory  of  the 
emperor  and  the  sack  of  the  towns. 

After  this,  the  emperor's  officers  in  the  different  towns 
began  to  act  with  great  severity.  A  strong  feeling  of 
resentment  was  thereby  roused  throughout  the  towns, 
and,  in  1167,  was  formed  the  famous  Lombard  League, 
of  which  Pope  Alexander  III  declared  himself  the 
patron  and  protector.  About  ten  years  afterwards,  the 
battle  of  Legnano  (1176)  decided  the  fortune  of  war 
in  favor  of  the  towns,  while  the  Treaty  of  Constance 
(1183),  that  followed,  confirmed  the  towns  in  their 
practical  independence.  Not  only  were  they  allowed  to 


The  Towns  135 

retain  their  own  internal  administration,  but  they  could 
also  declare  war  and  make  peace,  and  even  coin  their 
own  money — all  rights  that  are  commonly  supposed  to 
pertain  to  an  independent  sovereignty. 

From  henceforth  the  towns  practically  make  the  his- 
tory of  Italy.  Not  only  did  they  take  a  very  decisive 
part  in  the  struggle  between  the  empire  and  Papacy, 
but  the  history  of  Italy  became  afterwards  nothing  else 
than  the  history  of  separate  independent  City-States. 
Even  to  this  day  the  stranger  is  impressed  by  the  abso- 
lute difference  between  one  Italian  city  and  another. 
Each  city  has  its  own  style  of  architecture,  its  own  local 
traditions,  and  its  own  dialect.  It  is  clear  that  the  city 
life  of  Italy  had  deeply  impressed  itself  even  upon  the 
social  character  of  that  country. 

In  Spain,  the  growth  of  towns  also  played  a  very  im- 
portant part  in  the  history  of  the  country.  In  this  case, 
however,  the  starting  point  of  its  movement  and  its  pur- 
pose considerably  differed  from  those  of  the  countries 
that  we  have  been  considering.  The  kings  themselves 
were  the  first  to  inaugurate  the  independence  of  the 
towns.  They  voluntarily  granted  the  towns  such  rights 
as  the  freedom  to  choose  their  own  magistrates,  but 
expected  in  return  that  the  towns  should  help  in  defend- 
ing the  country  from  foreign  invasion,  and  in  forward- 
ing the  unity  and  consolidation  of  the  kingdom.  Also, 
as  a  guarantee  for  such  services,  a  royal  officer  was 
appointed  over  each  town  with  jurisdiction  over  such 
matters  as  military  service  and  the  payment  of  a  com- 
mon tax. 

The  towns  soon  fulfilled  their  purpose  and,  at  the 
same  time,  worked  out  their  own  development.  Like 
the  towns  in  Germany,  they  managed  to  get  a  place  in 
the  national  councils,  or  cones.  And  it  was  their  pres- 


136  Medieval  Period 

ence  that  gave  to  these  assemblies  such  a  democratic 
character. 

If  the  towns  in  Spain  differed  in  some  respects  from 
those  on  the  Continent,  the  towns  in  England  were  even 
yet  more  different. 

London  may  be  considered  a  fair  type  of  most  of  the 
English  towns.  Population  may  have  been  more  numer- 
ous, the  commodities  and  transactions  more  bulky  and 
extensive,  but  the  general  resemblance  may  be  consid- 
ered sufficient  to  warrant  the  acceptance  of  London  as  a 
general  type. 

The  charter  of  Henry  I  to  the  city  of  London  clearly 
shows  that  its  citizens  had  the  same  privileges  as  their 
patrons  on  the  Continent — such  privileges,  for  example, 
as  magistrates  elected  by  themselves,  exemption  from 
certain  burdens,  payment  of  a  fixed  rent,  and  full  pro- 
tection of  trade  and  commerce. 

But  the  English  towns  were  unique  in  this,  that  they 
were  never  completely  outside  the  royal  authority.  They 
always  formed  cooperating  units  in  the  national  system. 
Not  only  the  king,  but  Parliament  as  well,  asserted 
over  them  authority  and  jurisdiction.  Thus,  in  England 
the  mutual  relations  between  the  towns  and  the  central 
government  were  very  different  from  what  they  would 
otherwise  have  been.  From  the  very  beginning,  the 
towns,  which,  in  the  main,  were  almost  exclusive 
centers  of  trade,  industry,  and  commerce,  were  able  to 
exercise  an  influence  on  the  destinies  of  the  country ;  and 
this  influence  was  the  more  powerful  and  subtle  since  it 
was  exercised  not  by  a  caste,  but  by  a  class  of  people 
that  formed  a  vital  part  of  the  nation. 

The  growth  of  Parliament  is  intimately  bound  up 
with  the  growth  of  the  towns.  And  the  ultimate  end 
of  both  was  to  throw  the  preponderance  of  political 


The  Towns  137 

power  into  the  hands  of  the  middle  class  of  English 
society. 

Having  thus  taken  a  brief  survey  of  the  towns  in 
some  of  the  most  important  countries  of  Europe,  we 
must  now  consider  more  minutely  some  of  the  character- 
istics of  the  English  towns,  not  only  because  many  of 
these  characteristics  are  typical  of  what  is  to  be  found  in 
other  towns,  but  also  because  they  partly  explain  many 
of  the  municipal  institutions  and  customs  of  the  towns 
of  to-day. 

The  first  prominent  feature  of  town  life  in  the  Middle 
Ages  is  its  exclusiveness.  Very  little  was  to  be  seen  of 
that  constant  ebb  and  flow  of  outside  life,  such  as  we  see 
at  the  present  day.  Only  those  who  held  land  inside  the 
town  were  considered  to  be  truly  citizens,  and  there  were 
always  evidences  of  an  attempt  to  emphasize  their 
peculiar  prerogative. 

In  the  same  way  as  metic  merchants  in  Greece  were 
reminded  of  their  inferior  position  by  certain  taxes,  so 
the  outsiders  in  the  English  towns  were  constantly  re- 
minded of  their  outside  position  by  certain  restrictions. 
Thus  they  were  not  permitted  to  buy  and  sell  from  other 
strangers,  nor  were  they  allowed  to  trade  in  retail. 
Another  restriction  was  that  every  alien  merchant  should 
abide  in  the  house  of  some  citizen  assigned  him  for  that 
purpose.  Already,  by  the  Assize  of  Clarendon,  it  had 
been  laid  down  that  the  stranger,  visiting  the  town  more 
than  one  night,  should  dwell  in  the  house  of  one  who 
should  stand  as  security  for  his  good  behavior,  and  now 
this  was  further  reinforced  by  the  statute  of  Henry  V, 
which  required  that  every  stranger  should  "go  to  his 
host." 

All  throughout  the  Middle  Ages,  great  jealousy  was 
shown  toward  the  foreign  merchants  who  often,  under 


138  Medieval  Period 

royal  patronage,  took  up  their  residence  in  English 
cities,  and  during  the  Insurrection  of  Wat  Tyler,  one  of 
the  first  objects  of  attack  was  the  residences  and  fac- 
tories of  the  wealthy  Flemish  weavers,  who,  in  ad- 
dition to  their  foreign  extraction,  had  excited  jealousy 
by  their  careful  preservation  of  the  secrets  of  their 
trade. 

A  second  very  conspicuous  feature  was  the  municipal 
control  of  trade.  Trade,  both  in  the  market  and  in  the 
public  streets,  was  carefully  regulated  by  the  town 
authorities.  Proper  weights  and  measures  were  insisted 
upon ;  prices  of  such  things  as  bread,  ale,  flesh,  and  fish 
were  carefully  regulated  by  ordinances.  All  unlawful 
gain  was  sternly  prohibited,  and  a  proper  supply  of  corn 
had  to  be  kept  in  store  in  order  to  meet  seasons  of 
scarcity. 

Such  strict  control  over  the  course  of  trade  might 
seem  at  first  arbitrary  and  somewhat  detrimental  even  to 
the  best  interests  of  the  whole  community,  but  it  must 
be  remembered  that,  at  that  time,  the  area  of  trade  was 
extremely  narrow.  It  was  comparatively  easy  to  enforce 
wholesome  legislation,  and  any  abuses,  such  as  too  often 
occur  in  modern  times,  would  have  inflicted  intolerable 
suffering  in  times  and  places  where  the  opportunity  and 
the  market  of  buying  were  so  few. 

A  third  and  important  feature  of  the  town  was  the 
fair.  Not  only  in  England,  but  also  throughout  Con- 
tinental Europe,  the  fairs  were  the  great  centers  of  the 
distribution  of  wealth.  They  seem  to  have  taken  their 
origin  from  the  great  Church  festivals,  and  at  first  were 
often  connected  with  religious  and  monastic  institutions. 
Later  on,  nearly  all  the  important  towns  had  fairs  either 
within  the  walls  or  in  close  proximity.  Some  of  these 
fairs,  notably  those  of  Novgorod  in  Russia,  Leipzig  in 


The  Towns  139 

Germany,  and  Stourbridge  in  England,  were  of  world- 
wide importance. 

It  was  at  these  places  that  the  rarest  merchandise 
could  be  found,  and  that  goods  could  be  obtained  at  the 
cheapest  price.  It  was  there,  if  anywhere,  that  buyer 
and  seller  could  meet  one  another.  Wines  from  France 
and  Spain,  silks  and  velvets  from  the  East,  furs  and 
copper  from  the  Hanse  towns,  all  found  their  way  to  the 
walls  of  some  of  the  great  English  fairs.  Even  rare 
books  and  precious  stones  were  also  displayed  for  sale. 
It  was  no  wonder,  then,  that  people  traveled  to  the  fairs 
even  from  the  most  distant  parts,  and  that  they  found 
the  expense  of  the  journey  amply  defrayed  by  the  cheap- 
ness of  the  goods  that  they  bought. 

Some  idea  of  an  English  fair  can  be  gained  from 
Warton's  description  of  the  fair  of  St.  Giles,  near  Win- 
chester. We  are  told  that  the  area  of  its  jurisdiction 
was  no  less  than  seven  miles,  that  it  was  frequented  by 
several  foreign  merchants,  and  that  entire  streets  were 
set  apart  for  the  sale  of  the  different  commodities,  and 
that  the  duration  of  the  fair  was  sixteen  days. 

Naturally,  the  organization  of  such  fairs  was  highly 
complex.  There  were  judges  who  had  to  settle  any  dis- 
putes that  were  bound  to  arise,  and  there  was  also  a 
court,  presided  over,  generally,  by  the  mayor,  that  had 
jurisdiction  over  various  causes;  in  fact,  very  often  the 
fairs  had  mayors  of  their  own  elected  by  their  own 
officers. 

The  fair  during  the  Middle  Ages  was  a  matter  of 
necessity.  It  was  the  one  means  by  which  distant  parts 
of  the  market  could  be  brought  into  contact  one  with 
another,  and,  more  than  anything  else,  it  tended  to  divert 
trade  to  other  than  purely  local  channels.  Nowadays, 
such  means  of  communication  and  transit  as  are  fur- 


140  Medieval  Period 

nished  by  steam  and  electricity  render  the  fair  rather  an 
antiquated,  historical  pageant  than  otherwise.  But  then 
it  was  the  leading  feature  of  medieval  trade. 

Just  one  more  aspect  of  the  medieval  towns  has  to  be 
noticed,  and  that  is  the  government  of  the  town  by  the 
members  of  the  crafts,  or  guilds.  From  the  political 
point  of  view,  this  feature  is  perhaps  the  most  important 
of  all.  It  meant  the  solidarity  of  the  burgesses  as  a  dis- 
tinct order  and  gave  to  the  middle  classes  that  union  and 
strength  that  reduced  the  power  of  the  monarchy,  and 
brought  about  the  rise  of  democratic  forms  of  govern- 
ment. 

So  important,  however,  was  the  function  of  the  guilds 
and  so  complicated  was  their  nature  that  a  special  section 
will  be  devoted  to  this  subject. 


CHAPTER  III 

THE   GUILDS   AND    CRAFTS 

CONFUSION  has  often  been  caused  by  taking  the 
guilds  to  be  the  same  as  the  crafts.  It  is  true  that  the 
same  society  was  often  a  guild  and  also  a  craft,  but  even 
in  such  cases  the  functions  of  each  still  remained  differ- 
ent. The  best  way  of  arriving  at  a  clear  notion  of  the 
subject  of  this  section  will  be  to  consider  separately  the 
definitions  of  the  guild  and  of  the  craft. 

By  the  thirteenth  century,  the  guild  was  considered  as 
an  association  primarily  for  some  religious  purpose.  It 
was  not  necessarily  connected  with  the  practice  of  any 
trade,  though  frequently  this  was  the  case.  Even  in 
Anglo-Saxon  times,  there  had  been  guilds  formed  for 
the  purpose  of  self-defense  and  the  preservation  of 
peace ;  and  in  Norman  times  the  guilds  are  mentioned  in 
connection  with  industrial  occupations.  But  after  the 
thirteenth  century  the  guild  was  always  associated  with 
some  religious  purpose. 

On  the  other  hand,  a  craft  was  an  association  that  was 
always  primarily  of  an  industrial  character.  Unlike  the 
word  "guild,"  which  somewhat  fluctuated  in  the  exten- 
sion of  its  meaning,  the  word  "craft"  was  constantly 
connected  with  some  form  of  industry.  At  the  same 
time,  it  frequently  happened  that  the  craft  took  upon 
itself  the  functions  of  a  religious  organization,  but  such 
functions  were  subordinated  to  the  essential  character  of 
the  craft,  namely,  an  industrial  society  or  organization. 

Having  thus  far  seen  the  precise  meaning  that  is  to 
be  attached  to  the  craft  and  the  guild,  we  are  now  in  a 
better  position  to  understand  their  development  and  the 


142  Medieval  Period 

character  that  they  acquired  by  the  later  Middle 
Ages. 

It  has  already  been  pointed  out  that  in  the  economic 
development  of  ancient  Rome  there  had  gradually 
grown  into  existence  an  industrial  and  manufacturing 
system  quite  distinct  from  that  of  agriculture  or  of  mere 
trade.  The  barbarian  invasions,  however,  had  swept 
away  this  system,  and  for  some  years  medieval  Europe 
reminds  us  of  the  condition  of  early  Greece,  when  only 
agriculture  and  the  hand-to-mouth  industries  were  prac- 
tised. But,  by  degrees,  with  the  spread  of  peace  and  the 
consolidation  of  society,  improvements  began  to  appear. 
Men  had  the  leisure  to  manufacture  and  to  buy  things 
that  provided  not  only  for  the  necessities,  but  also  for 
the  comforts  of  life. 

Very  soon  we  find  trades  and  handicrafts  appearing 
in  a  small  way  among  the  different  towns.  At  first, 
these  were  carried  on  in  the  individualistic  system,  there 
being  no  organization  and  no  cooperation.  Such  a  sys- 
tem became  quite  antagonistic  to  the  associative  spirit 
of  the  Middle  Ages,  and  thus  these  different  industries 
and  trades  generally  formed  themselves  into  groups 
which  entirely  did  away  with  individual  effort  and 
enterprise. 

The  first  step  in  the  movement  was  the  municipal 
inspection  and  supervision  of  trade.  Some  need  was  felt 
of  protecting  the  interests  of  the  buyer  and  consumer, 
and  of  this  need  the  members  of  the  different  trades 
showed  themselves  fully  cognizant.  It  was  they  them- 
selves who  often  took  the  initiative  and  prayed  the 
authorities  to  appoint  certain  officials  who  should  care- 
fully inspect  the  quality  of  the  goods  they  produced,  the 
answer  generally  being  that  certain  members  should  be 
chosen  out  of  the  crafts  for  this  purpose.  Such  petitions 


The  Guilds  and  Crafts  143 

clearly  indicate  that  the  need  of  supervision  was  the 
first  thing  that  brought  together  the  members  of  the 
same  craft. 

The  second  step  in  the  development  of  the  craft  was 
the  exclusiveness  of  its  membership.  Hitherto,  every- 
body might  practise  any  trade  he  chose.  But  it  would 
manifestly  be  exceedingly  difficult  to  secure  efficient  work 
and  well-made  goods  if  every  individual  were  allowed 
to  practise  the  trade  and  sell  his  wares.  Hence,  there 
began  a  movement  on  the  part  of  the  overseers,  or  war- 
dens, in  favor  of  a  monopoly  of  trade.  They  begged 
that  those  only  should  practise  the  trade  who  had  previ- 
ously proved  themselves  good  and  efficient  workmen. 
This  previous  proof,  however,  could  not  be  given  unless 
the  newcomer  had  been  working  for  some  time  under 
the  actual  supervision  of  other  members  of  the  trade.  In 
other  words,  no  person  was  considered  fit  to  practise  the 
trade  unless  he  had  gone  through  the  preliminary  and  in- 
termediate stages  of  apprenticeship  and  journeymanship. 

With  this  exclusiveness  on  the  part  of  the  members  of 
the  different  trades,  there  begins  the  true  nature  of  the 
craft,  or  an  industrial  organization  having  a  definite 
sphere  of  action,  carried  on  according  to  certain  rules 
and  regulations,  having  special  officers  of  its  own,  a 
peculiar  hierarchy  of  grades,  and  often,  though  not 
always,  having  a  charter  of  a  corporation  and  a  common 
seal  and  the  power  to  purchase  and  to  possess  land. 

Each  one  of  these  elements  will  be  now  considered 
separately.  And  although  what  is  said  applies  mainly 
to  the  English  crafts,  it  must  be  kept  in  mind  that  sub- 
stantially the  same  was  to  be  found,  at  one  time  or 
another,  also,  in  the  Continental  countries. 

First,  there  was  a  definite  sphere  of  action  laid  down 
in  certain  rules.  A  part  of  this  sphere  of  action  has 


144  Medieval  Period 

already  been  indicated,  namely,  the  inspection  of  work 
and  goods,  but  there  were  also,  as  well,  other  depart- 
ments of  work.  The  methods  of  performing  the  work, 
the  hours  of  work,  the  amount  of  wages,  the  relations 
between  employers  and  the  employed — all  these  were 
minutely  prescribed.  Even  the  collection  of  debts  was 
also  one  of  their  functions.  In  the  town  itself,  the  ordi- 
nary town  court  was  the  usual  means  of  enforcing  the 
payment  of  debt,  but  when  the  debtor  lived  in  some 
other  town,  then  the  guild  itself  would  intervene.  The 
guild,  by  its  powerful  influence,  ramifying  into  every 
part  of  the  country,  and  by  the  wealth  at  its  disposal 
with  which  it  could  prosecute  almost  any  suit,  enabled 
the  creditor  to  collect  his  debt  far  more  easily  than 
would  otherwise  have  been  the  case. 

Certain  other  functions  of  a  beneficiary  character  were 
undertaken  by  the  crafts.  In  many  cases  they  acted  as 
insurance  societies.  When  the  member  fell  into  poverty 
or  fell  under  such  misfortune  as  imprisonment,  then  he 
was  frequently  entitled  to  relief  from  the  common  fund. 
This  was  mostly  the  case  with  the  religious  guilds. 
Sometimes  a  weekly  pittance  was  allowed,  sometimes  a 
small  loan  was  granted  in  order  to  meet  some  urgent 
necessity.  Such  favors,  however,  were  not  of  the  char- 
acter of  a  formal,  binding  contract,  but  rather  the  result 
of  the  spontaneous  benevolence  of  the  society  or  its 
officials.  In  later  years,  this  charity  assumed  a  more 
tangible  shape.  Hospitals  were  often  erected  for  the 
reception  of  the  poorer  members  of  the  fraternity,  and 
in  England,  especially,  there  could  be  found  a  great 
number  of  such  foundations  in  the  times  immediately 
preceding  the  Reformation. 

Nor  was  the  guild  oblivious  of  the  needs  of  its 
members  in  the  other  world.  Foundations  were  left  in 


The  Guilds  and  Crafts  145 

order  that  Masses  might  be  said  for  the  souls  of  its 
deceased  members,  and  charities  were  also  established — 
that  is  to  say,  chapels  were  erected  and  endowed  in 
order  that  one  or  more  priests  might  say  Mass  for  the 
defunct  members  of  the  guild. 

From  what  has  been  said,  it  will  be  clearly  seen  how 
numerous  and  diversified  were  the  functions  of  the  me- 
dieval craft.  Certainly,  there  must  have  been  certain 
officials  in  the  craft  endowed  with  authority,  who  could 
regulate  and  enforce  so  many  different  kinds  of  activity. 
These  officials  were  the  wardens,  who  were  usually 
elected  every  year.  Judging  from  the  statutes  that 
mention  these  elections,  the  number  of  wardens  seems 
to  have  varied ;  occasionally  it  was  two,  sometimes  six. 

Their  authority  was  not  autocratic.  They  were  in 
office  mainly  for  the  purpose  of  carrying  out  the  regu- 
lations of  the  guild  and  enforcing  its  decrees.  More- 
over, their  power  was  generally  expressly  subordinated 
to  that  of  the  mayor  of  the  town.  It  is  also  very  proba- 
ble that  the  police  regulations  of  the  guild  were  enforced 
by  the  town  police,  which  thus  extended  even  to  such 
things  as  receiving  of  property  and  to  the  imposition  of 
financial  penalties  by  way  of  compensation  for  personal 
injuries. 

Besides  the  wardens  who  enjoyed  the  limited  jurisdic- 
tion already  described,  there  were  also  other  people  in 
the  craft,  or  guild,  enjoying  a  limited  local  authority, 
and  these  were  the  masters  who  had  under  them  appren- 
tices and  journeymen.  And  this  brings  us  to  the  third 
element  of  the  medieval  guild,  or  craft,  namely,  the 
hierarchy  of  grades. 

The  lowest  grade  of  all  was  that  of  the  apprentice. 
We  have  already  seen  that  one  of  the  steps  by  which  the 
craft  became  exclusive  in  its  character  was  the  regula- 


146  Medieval  Period 

tion  that  none  should  practise  the  trade  until  he  had 
given  previous  proof  of  his  competency.  This  regu- 
lation necessitated  some  course  of  training  which  went 
by  the  name  of  apprenticeship. 

Some  idea  of  what  this  apprenticeship  was  may  be 
gained  from  the  following  indenture  of  apprenticeship, 
drawn  up  in  the  fourteenth  century,  during  the  reign  of 
King  Edward  III : 

"This  indenture  made  on  the  eighteenth  day  of  Sep- 
tember, the  year  of  the  reign  of  Edward  III  .  .  . 
between  John  Gare  of  St.  Mary  Cray,  in  the  County 
of  Kent,  and  Walter  Bryce,  son  of  J.  Bryce  of  Wimelton 
of  same  County.  Whereas,  the  said  Walter  Bryce  hath 
covenanted  with  the  said  J.  Gare  for  the  time  of  seven 
years,  and  that  the  said  J.  Gare  shall  find  the  said  Wal- 
ter meat,  drink  and  clothing  during  the  said  time.  Also, 
the  said  J.  Gare  shall  teach  the  said  Walter  his  craft 
as  he  may  and  can,  and  also  the  said  J.  Gare  shall  give 
him  the  first  year  of  said  seven  years  Hid.  in  money, 
and  the  II  year  VId.,  and  so  after  the  sum  of  Vlld. 
for  each  year  of  the  said  seven  years,  and  the  last  year 
of  the  seven  years  the  said  J.  Gare  shall  give  the  said 
Walter  ten  shillings  of  money.  And  the  said  Walter 
shall  well  and  duly  keep  the  occupation  and  do  such 
things  as  the  said  J.  Gare  shall  bid  him  to  do  as  unto 
the  said  Walter  shall  be  lawful.  And  the  said  Walter 
shall  neither  go  to  rebele  or  sport  without  the  license  of 
the  said  John.  In  witness  thereof,  the  parties  aforesaid 
have  put  their  seals." 

From  this  document  can  be  roughly  surmised  the 
reciprocal  relations  between  master  and  apprentice. 
The  master  was  to  board  and  clothe  and  pay  the  appren- 
tice, as  well  as  teach  him  the  trade,  while  the  apprentice 
was  amenable  to  the  general  jurisdiction  of  the  master 


The  Guilds  and  Crafts  147 

and  was  tied  down  to  the  occupation  of  the  trade  for  the 
period  of  seven  years. 

With  regard,  however,  to  the  number  of  years'  ap- 
prenticeship and  the  number  of  apprentices  that  might 
be  employed  by  the  same  master,  there  does  not  seem  to 
have  been  any  general  uniformity.  In  England  and  in 
France,  longer  terms  of  apprenticeship  occur,  sometimes 
amounting  to  the  length  of  twelve  years,  though  such 
cases  were  rare.  In  Germany,  the  time  of  apprentice- 
ship was  considerably  shorter,  amounting  only  to  two  or 
three  years. 

In  regulating  the  number  of  apprentices,  the  general 
tendency  was  to  restrict  rather  than  increase.  The 
reason  for  this  was  obvious.  If  an  undue  number  of 
apprentices  were  employed,  there  would,  in  a  few  years' 
time,  be  an  excessive  number  of  masters  practising  the 
trade,  which  would  then  become  overcrowded.  Such 
restriction  was  brought  about  not  only  by  directly  limit- 
ing by  statute  the  number  of  apprentices,  sometimes  only 
allowing  a  master  to  apprentice  his  own  son,  but  also  by 
exacting  that  journeymen  should  be  appointed  for  every 
certain  number  of  apprentices. 

The  apprentices  in  England  speedily  formed  an  asso- 
ciation of  their  own,  and  became  a  very  formidable 
body.  Sometimes  their  disturbances  and  riots  were  a 
menace  to  the  public  peace,  and  during  the  troubles  of 
the  Stuart  times  they  took  a  very  active  political  part 
on  the  side  of  the  Commonwealth,  and  were  enrolled  in 
the  militia.  Then  afterwards,  when  the  rebellion  was 
over,  they  took  a  leading  part  in  the  Restoration. 

One  step  above  that  of  the  apprentice  was  the  jour- 
neyman. Even  though  the  apprentice  had  gone  through 
his  seven  or  ten  years'  training,  he  was  not  yet  consid- 
ered sufficiently  competent  to  set  up  as  an  independent 


148  Medieval  Period 

master.  He  still  had  to  serve  a  certain  number  of  years 
as  journeyman.  While  he  was  fully  qualified  to  exercise 
his  trade,  yet  he  had  to  do  so  under  the  supervision  of  a 
master.  Altogether  the  position  of  a  journeyman  was 
not  unlucrative,  or  bereft  of  any  kind  of  responsibility. 
His  wages  sometimes  amounted  to  half  the  total  income 
of  the  master  himself,  and  he  enjoyed  authority  and 
jurisdiction  over  the  apprentice. 

The  custom  of  employing  journeymen  was  prevalent, 
not  only  in  England,  but  also  on  the  Continent.  In  six 
of  the  great  trading  associations  of  Paris,  it  was  dis- 
tinctly laid  down  that  the  apprentice,  after  serving  his 
term  of  apprenticeship,  must  also  serve  a  certain  number 
of  years  as  companion,  at  the  end  of  which  time  he  must 
exhibit  to  the  wardens  of  the  company  some  masterpiece 
illustrating  his  skill  in  his  art.  In  Germany,  also,  the 
same  custom  is  found,  though  sometimes  the  aspirant 
might  be  admitted  to  the  lower  branches  of  the  trade 
without  going  through  the  full  course. 

It  is  interesting  to  observe  that  the  journeymen,  like 
the  apprentices,  had  a  solidarity  and  an  organization  of 
their  own.  This  was  caused  by  their  interests  being 
opposed  to  those  of  their  masters.  Owing  to  the  in- 
crease of  population  and  keener  competition  for  the 
rank  of  master,  not  all  the  journeymen  could  become 
masters.  In  addition  to  this,  the  selfishness  of  the  mas- 
ters attempted  by  artificial  means  to  obstruct  the  in- 
crease in  the  number  of  journeymen. 

It  was  not  long  before  the  journeymen  associated 
themselves  together  for  the  protection  of  their  rights. 
At  first,  they  tried  to  disguise  their  real  purpose  under 
the  cloak  of  religious  worship.  But  the  veil  was  trans- 
parent and  the  masters  were  frequently  heard  complain- 
ing that  the  journeymen  formed  conspiracies  with  the 


The  Guilds  and  Crafts  149 

object  of  obtaining  a  rise  in  wages.  For  this  purpose, 
strikes  were  sometimes  resorted  to,  and  the  litigations 
between  the  journeymen  and  their  masters  began  some- 
what to  resemble  the  modern  antagonism  between  labor 
and  capital. 

We  now  come  to  the  remaining  feature  of  the  me- 
dieval crafts,  and  that  is  their  corporate  functions. 
Many  of  the  crafts  had  received  royal  charters,  the  first 
of  the  crafts  to  be  thus  honored  being  that  of  the 
weavers  in  London.  As  such  they  could  use  a  common 
seal  and  were  entitled  to  purchase  and  to  possess  land. 
Many  of  the  crafts  speedily  acquired  large  amounts  of 
land.  Also  they  had  large  halls  of  their  own,  where 
they  held  their  assemblies.  These  halls  were  often 
beautifully  built  and  elaborately  furnished  and  decor- 
ated. The  Guildhall  in  London  and  in  other  old  cities, 
both  in  England  and  on  the  Continent,  testify  to  the 
wealth  and  taste  of  the  craftsmen. 

The  guilds  and  crafts  of  the  Middle  Ages  influenced 
to  a  very  great  extent  the  prosperity  and  power  of  the 
citizens,  or  middle  class  of  the  community.  It  was 
their  associations  that  gave  to  the  middle  classes  the 
political  power  which  they  wielded  not  only  within  the 
circumference  of  their  own  towns,  but  also  in  larger 
areas.  The  growth  of  Parliament  in  England,  the 
crippling  of  the  lawless  feudal  element  in  France  and 
Germany,  the  overthrow  of  imperial  despotism  in  Italy, 
are  mainly  to  be  attributed  to  the  solidarity  of  the  middle 
classes  that  had  been  accomplished  mainly  by  the  instru- 
mentality of  the  guilds  and  crafts. 


CHAPTER   IV 

COMMERCE  AND  INDUSTRY  OF  THE  MIDDLE  AGES 

THE  most  important  industry  of  the  Middle  Ages 
was  that  of  agriculture.  This  resulted  from  the  very 
nature  of  feudalism.  Nearly  everybody  was  a  land- 
owner, and  therefore  all,  from  the  highest  to  the  lowest, 
were  interested  in  the  productiveness  of  land.  And 
then,  there  was  also  the  fundamental  reason  that  of  all 
other  industries  agriculture  satisfies  the  necessities  of 
life,  producing  at  once  all  that  is  required  for  food  and 
clothing. 

Even  the  smallest  peasant  farmer  indulged  in  all  the 
various  forms  of  the  industry.  He  had  his  own  little 
lot  of  ground,  consisting  of  little  strips  scattered  here 
and  there  in  the  different  arable  fields,  and  only  sepa- 
rated from  those  belonging  to  other  proprietors  by  lines 
of  uncultivated  ground.  He  would  also  have  his  oxen, 
sheep,  and,  especially,  poultry.  The  keeping  of  pigs 
was  also  as  common  as  it  is  in  Ireland  at  the  present  day. 
In  most  of  the  villages,  the  swine  of  the  different  inhabi- 
tants were  trusted  to  the  vigilance  of  the  common  swine- 
herd, much  as  in  certain  parts  of  Switzerland  to-day  the 
goats  of  different  proprietors  are  under  the  watchful 
attention  of  a  common  official. 

Agriculture  also  seems  to  have  met  with  a  great  deal 
of  scientific  treatment.  Books  were  written  upon  the 
subject,  among  them  being  twelve  treatises  composed  by 
no  less  a  person  than  Bishop  Grosseteste  of  Lincoln, 
and  another  composition,  written  anonymously,  called 
"Husbandry." 

By  the  fourteenth  century  there  seems  to  have  been  a 


Commerce  and  Industry  of  the  Middle  Ages       151 

fairly  general  acquaintance  with  advanced  methods  of 
improving  the  soil  by  digging  and  trenching,  and  even 
of  altering  the  condition  of  the  poorer  kind  of  soils. 
The  methods  practised  for  this  purpose  were  marling 
and  claying.  The  marl  is  a  valuable  fertilizing  mate- 
rial, generally  containing  a  varying  quantity  of  lime,  and 
quickly  dissolving  after  being  on  the  ground  for  some 
time.  Claying  the  soil  consists  in  artificially  enriching 
its  condition  by  mixing  it  with  clay.  Both  these  proc- 
esses seem  to  have  been  known,  and  they  considerably 
improved  the  soil  as  well  as  raised  the  price  of  the  farm. 

Of  all  the  branches  of  agricultural  industry,  the  most 
lucrative  and  the  one  that  brought  in  most  wealth  to  the 
nation  was  that  of  breeding  sheep  for  the  sake  of  the 
wool.  This  was  the  main  source  of  extra  profit. 
Amongst  those  who  became  famous  for  the  quantity  of 
wool  that  they  produced  were  the  Cistercian  monks; 
indeed,  the  term  Cistercian  wool  became  quite  common. 
Most  of  their  estates  seem  to  have  been  in  the  west  of 
England,  and  the  fleece  that  they  exported  added  much 
both  to  their  own  wealth  and  that  of  the  kingdom. 

Up  to  about  the  thirteenth  century,  only  the  raw 
material  was  produced  in  England,  and  this  was  sent  on 
to  the  Continent  in  order  to  be  worked  up  into  the  fin- 
ished material.  Flanders  was  the  country  that  did  most 
of  this  trade,  but  Germany  also  received  a  considerable 
portion  of  the  English  wool  for  manufacture  into  cloth. 

How  enormous  must  have  been  the  English  trade  in 
wool  can  be  gathered  from  the  celebrated  statute  of 
Edward  I,  dealing  with  the  tax  on  wool,  and  the  great 
importance  attached  to  that  tax.  The  extent  of  the 
trade  can  also  be  measured  by  its  effects  on  Flanders, 
where  the  exportation  of  English  wool  was  temporarily 
stopped  in  1258.  So  great  was  the  distress  caused  in 


152  Medieval  Period 

Flanders,  that  she  was  forced  to  accede  to  the  political 
demands  of  England.  Indeed,  England,  with  regard 
to  the  production  of  wool,  seems  to  have  enjoyed  quite  a 
monopoly.  Her  insular  position  and  comparative  tran- 
quillity allowed  her  opportunities  that  were  denied  to 
the  often  war-swept  countries  of  the  Continent.  Also, 
the  quality  of  English  soil  was  such  as  to  render  the 
quality  of  the  fleece  both  fine  and  substantial. 

England,  however,  was  not  content  to  remain  long  in 
the  mere  position  of  an  exporter  of  raw  material.  In  a 
treatise  called  "The  Golden  Fleece,"  much  praise  is 
given  to  the  English  wool,  and,  after  mentioning  the 
enormous  exportation  of  wool  to  Burgundy  and  the  great 
advantage  accruing  therefrom  to  that  country,  the  docu- 
ment goes  on  to  say  that  the  king  had  decided  to  look 
after  the  welfare  of  his  own  subjects  in  that  respect,  and, 
therefore,  invited  certain  clothiers  to  convert  the  Eng- 
lish wool  into  cloth.  Shortly  after  this,  appeared  a 
statute  in  1337  which  offered  protection  to  foreigners 
living  in  England,  in  order  that  they  might  inaugurate 
the  woolen  industry  on  English  soil. 

Between  the  years  1258  and  1340,  there  was  a  whole 
series  of  statutes  and  writs,  all  dealing  in  the  same  way 
with  the  promotion  of  the  woolen  industry  in  England. 
The  Oxford  Parliament  in  1258  decreed  that  the  wool 
should  be  worked  up  in  England,  and  should  not  be  sold 
to  foreigners,  and  that  every  one  should  use  woolen 
cloth  made  in  the  country.  In  1271,  a  statute  was 
passed  prohibiting  the  importation  of  woolen  cloth. 
Again  in  1331,  letters  of  protection  were  granted  to 
John  Kempe  of  Flanders,  weaver  of  woolen  cloth.  In 
1336,  a  similar  letter  was  granted  to  two  weavers  from 
Brabant  who  had  settled  in  York. 

All  these  enactments  illustrate  very  clearly  the  sue- 


Commerce  and  Industry  of  the  Middle  Ages       153 

cessive  steps  by  which  the  woolen  industry  established 
itself  in  England.  First,  the  exportation  of  wool  was 
forbidden  in  order  that  the  working  of  it  up  might  be 
entrusted  to  home  manufacture;  then,  upon  this  prov- 
ing insufficient,  the  importation  of  foreign  cloth  was 
stopped,  so  as  to  prevent  Englishmen  from  buying  any- 
thing but  the  home-made  material;  finally,  the  inexperi- 
ence of  the  English  workmen  entailed  still  further  legis- 
lation, and  foreign  workmen  were  invited  over  to  Eng- 
land under  royal  protection  in  order  to  start  the  indus- 
try on  a  proper  footing. 

By  the  year  1463,  we  find  a  still  further  change.  Not 
only  is  the  English-made  cloth  industry  firmly  estab- 
lished in  England,  but  it  is  actually  finding  its  way  to  the 
Continent,  and  competing  there  with  the  manufactures 
of  Flanders  and  Germany.  Even  this  is  also  illustrated 
by  legislative  enactments.  For,  in  1434,  a  statute  was 
passed,  forbidding  the  exportation  of  wool,  in  order  to 
force  Flanders  into  accepting  the  importation  of  English 
wool,  while  in  1496  the  great  commercial  treaty  called 
the  Intercursus  Magnus  fully  established  the  privilege 
of  England  to  export  her  home-made  cloth  to  Flanders. 
Naturally,  this  extension  of  trade  in  English  manufac- 
tured goods  added  largely  to  the  national  wealth  of 
England,  while  the  counties  of  Norfolk  and  Suffolk, 
where  these  manufactures  were  the  thickest,  are  shown, 
by  the  assessments  of  the  period,  to  have  been  the 
wealthiest  in  England. 

Another  industry  connected  with  the  cloth  manufac- 
ture was  that  of  dyeing.  The  art  of  dyeing  cloth  was 
known  even  from  the  most  ancient  times.  It  was  cer- 
tainly practised  during  the  Celtic  occupation  of  Britain, 
and  in  the  reign  of  King  John  considerable  quantities  of 
woad  were  imported  for  this  purpose. 


154  Medieval  Period 

Altogether,  the  manufacturing  and  industrial  system 
in  England,  though  limited  in  variety,  was  extensive,  its 
organization  was  complex,  and  its  activities  were  sub- 
jected to  much  regulation  on  the  part  of  the  government. 
Thus,  a  special  officer  was  sometimes  appointed,  called 
the  aulnager,  whose  business  it  was  to  see  that  the  cloth 
made  was  of  the  proper  size  and  length,  and  what  was 
still  more  important,  certain  towns  were  selected,  called 
staple  towns,  and  to  these  towns  all  goods  of  a  certain 
class  had  to  be  sent  before  they  could  be  exported 
abroad.  Then,  again,  statutes  were  passed  with  the 
view  of  a  constant  provision  of  raw  material  for  native 
manufacturers.  Even  the  financial  relations  between 
the  employers  and  their  workmen  were  regulated. 
Thus,  by  the  end  of  the  fifteenth  century,  it  was  enacted 
that  when  the  work  was  finished,  the  workmen  should 
be  paid  in  the  coin  of  the  realm  and  not  in  orders  for 
provisions  or  other  kind  of  goods.  Such  a  statute  as 
this  would  seem  to  show  that  the  odious  system  of  truck 
had  already  found  its  way  into  England,  and  that  some 
necessity  was  felt  of  protecting  the  workman  from  his 
over-astute  employer. 

In  general,  the  condition  of  the  industrial  classes 
seems  to  have  been  better  than  that  on  the  Continent. 
In  England,  they  were  not  regarded  as  something  below 
the  ordinary  level,  and  such  statutes  as  that  of  Magna 
Charta  recognized  them  as  a  class  with  distinct  rights 
and  privileges  of  its  own.  We  now  turn  to  the  distri- 
bution of  wealth  during  the  Middle  Ages. 

THE   DISTRIBUTION   OF   WEALTH 

Trade  and  commerce  in  Europe  began  to  flourish  at 
a  very  early  period.  By  the  eleventh  century,  we  read 


Commerce  and  Industry  of  the  Middle  Ages  155 

of  seaport  towns  on  the  east  side  of  England  doing  a 
considerable  trade  with  distant  countries.  In  other 
parts  could  be  found  not  only  wines  and  vinegar  from 
France,  iron  work  from  Belgium,  and  iron  and  steel 
from  Scandinavia,  but,  later  on,  such  commodities  as 
soap,  flax,  and  refined  sugar  from  Italy,  and  even  spices 
and  cloves  from  the  various  countries  of  the  Far 
East. 

It  was  Italy,  however,  that  led  the  way  in  commercial 
progress,  and  especially  from  the  point  of  view  of  mari- 
time commerce.  Venice  was  the  most  important  seaport 
town.  Her  fleet  numbered  no  less  than  3,000  merchant 
vessels,  and  was  manned  by  17,000  seamen,  while  the 
port  of  Venice  was  one  of  the  first  to  compile  a  code  of 
maritime  laws  which  affected  the  construction,  manning, 
and  surveillance  of  ships.  After  Venice  came  Genoa. 
Already  by  1088,  the  fleets  of  Genoa  had  obtained  an 
important  position  on  the  list  of  maritime  powers,  and, 
in  the  thirteenth  century,  began  to  dispute  with  Venice 
the  palm  of  supremacy.  At  Genoa,  also,  there  was 
compiled  a  code  of  maritime  laws,  dealing  chiefly  with 
the  dimensions  of  ships.  And  besides  Venice  and 
Genoa,  other  thriving  seaport  towns  in  Italy,  though  of 
less  importance,  were  those  of  Ravenna,  Ancona,  and 
Amalfi. 

In  France  and  Spain  there  were  also  a  number  of  trad- 
ing centers.  Lyons,  in  the  south  of  France,  became  a 
very  important  emporium,  and  Marseilles  did  a  very 
considerable  trade  with  places  even  as  far  as  Sicily. 
Also,  in  Marseilles  we  find  the  same  combination  of 
trade  and  aristocracy  as  at  Venice,  many  of  the  mer- 
chants being  also  nobles.  In  Spain,  Barcelona,  even 
by  the  middle  of  the  eleventh  century,  had  become  a 
very  important  commercial  center,  and  from  the  time 


156  Medieval  Period 

of  Pedro  III  her  merchants  had  enjoyed  very  great 
privileges. 

Other  countries  that  shared  in  the  general  circulation 
of  commerce  were  the  Netherlands  and  Germany.  In 
the  Netherlands,  Bruges  rapidly  became  an  important 
commercial  depot,  and,  perhaps  even  more  than  the 
other  cities,  profited  by  its  position  between  the  trading 
communities  of  the  North  and  the  South.  Not  only  at 
one  time  was  Bruges  the  principal  emporium  of  Central 
Europe,  but  she  was  also  the  seat  of  a  great  woolen 
manufacturing  industry.  And  it  was  in  recognition  of 
this  that  Philip  the  Good  established  there,  in  1420,  the 
celebrated  Order  of  the  Golden  Fleece. 

What  has  been  said  will  easily  show  how  extensive 
must  have  been  the  commercial  activity  of  the  Middle 
Ages.  But  it  was  after  the  Crusades  that  we  find  this 
activity  at  its  highest.  European  merchants,  especially 
the  Italians  from  Venice,  Genoa,  and  Pisa,  held  impor- 
tant trading  quarters  in  Jerusalem,  Jaffa,  and  Tripoli, 
while  Venice  after  the  Fourth  Crusade  had  a  consider- 
able share  in  the  division  of  the  city  of  Constantinople. 
Such  commercial  colonies  promoted  rapid  intercourse 
between  the  East  and  the  West.  New  luxuries  were  in- 
troduced into  Europe,  new  tastes  and  wants  were  devel- 
oped, and,  at  the  same  time,  the  marvelous  develop- 
ment of  the  shipping  industry,  owing  to  the  requirements 
of  the  Crusaders,  enabled  these  wants  to  be  satisfied. 

There  were,  however,  certain  other  agencies  at  work, 
some  of  which  had  a  great  influence  on  the  extent  and 
direction  of  commerce.  These  agencies,  which  must  be 
considered  separately,  were  the  banks,  the  Jews,  the 
monasteries,  and  the  influence  of  the  State. 

First  of  all,  there  were  the  banks.  These,  as  in  an- 
cient Greece  and  Rome,  played  a  great  part  in  facilita- 


Commerce  and  Industry  of  the  Middle  Ages  157 

ting  the  movements  of  trade.  Venice,  which  was  fore- 
most in  trade,  was  the  first  to  develop  the  banking  sys- 
tem. At  first  there  were  only  private  bankers,  who,  in 
addition  to  their  ordinary  business  of  money  changers, 
found  it  convenient  to  accept  deposits.  Then  the  busi- 
ness assumed  larger  proportions,  especially  when,  in 
1171,  a  public  debt  was  made  transferable,  and  became 
thereby  the  nucleus  of  a  great  number  of  financial  trans- 
actions. 

The  connection  between  the  banking  system  and  the 
State  seems  to  have  arisen  from  the  fact  that  the  Vene- 
tian government  found  it  necessary  to  impose  on  private 
bankers  certain  regulations,  in  order  to  defend  the  in- 
terests of  depositors.  For  example,  greater  amount  of 
security  was  demanded,  and  bankers  had  to  hold  them- 
selves in  readiness  to  pay  their  customers.  The  follow- 
ing three  clauses  will  sufficiently  indicate  the  stringency 
of  government  supervision : 

"i.  It  shall  be  free  for  every  one  to  accept,  or  not, 
a  credit  in  a  bank  for  contracts  made  heretofore,  but 
this  shall  not  be  refused  for  those  made  hereafter,  un- 
less by  express  agreement  it  shall  have  been  declared 
that  payment  shall  be  made  outside  the  bank. 

"2.  Credit  in  bank  shall  not  be  written  off  to  any  one 
for  any  amount  in  his  absence,  but  credits  shall  be  writ- 
ten with  both  parties  present. 

"3.  Bankers,  as  aforesaid,  must  pay,  to  those  who 
wish,  in  cash  at  once  and  in  heavy  gold  and  good  money 
at  the  market  rates,  or  rates  current  at  our  offices ;  and 
if  any  should  refuse  they  shall  be  subject  to  the  penalty 
of  twenty-five  ducats,  and  the  provenditor,  then  present, 
shall  none  the  less  make  them  pay." 

In  course  of  time,  the  government  began  to  lay  down 
the  nature  of  the  different  things  in  which  banks  might 


158  Medieval  Period 

lawfully  invest  the  money  of  their  customers.  Among 
such  investments  were  the  purchase  of  lands  and  houses, 
dealings  in  corn,  and  even  loans  to  private  individuals. 

The  next  step  after  government  supervision  was  that 
of  forming  a  public  State  bank,  which  took  place  in 
1587,  and  seems  to  have  been  the  first  example  in 
medieval  history  of  any  kind  of  State  bank.  It  was 
essentially  a  bank  of  deposit.  It  did  not  invest  the 
money  of  its  depositors,  a  practice  which  had  been  the 
ruin  of  many  of  the  private  banks.  It  only  safeguarded 
absolutely  the  money  of  the  depositors  and  either  paid 
it  out  when  required  or  made  a  transfer  of  the  credit 
from  one  person  to  another. 

The  State  bank  did  not  mean  the  entire  extinction  of 

» 

all  other  banking  companies.  In  1619  was  created  the 
celebrated  Banco  del  Giro.  The  nature  of  this  bank 
was  interesting  and  somewhat  reminds  us  of  some  of 
the  features  of  the  English  consols.  There  were  cer- 
tain creditors  of  the  republic  and  these  were  paid  by 
being  credited  with  a  corresponding  amount  of  deposit 
in  the  Banco  del  Giro.  At  the  same  time  a  large  reserve 
was  created  in  order  to  meet  any  possible  immediate  de- 
mands on  the  part  of  the  creditors.  Evidently  the  bank 
seems  to  have  been  founded  upon  a  good  and  solid 
basis,  for  it  had  a  long  existence,  enduring  until  the 
time  of  the  occupation  of  Venice  by  Napoleon. 

Another  Italian  bank,  founded  in  1407,  was  the  Bank 
of  Genoa.  This,  unlike  the  bank  at  Venice,  was  not 
merely  a  bank  of  deposit.  It  was  more  like  the  private 
Venetian  banking  concerns,  and  traded  with  the  money 
that  was  left  on  deposit.  Possibly,  the  modern  system 
of  checks  drew  its  origin  from  this  bank,  since  one  of 
the  functions  of  the  bank  was  to  issue  and  cash  money 
orders.  For  a  long  time  the  Bank  of  Genoa  had  a  pros- 


Commerce  and  Industry  of  the  Middle  Ages  159 

perous  existence,  so  much  so  that  at  one  time  it  became, 
on  account  of  its  territorial  possessions,  almost  a  sepa- 
rate State.  One  of  its  clients,  however,  Philip  II  of 
Spain,  brought  it  to  ruin  by  the  repudiation  of  the  credit 
that  he  had  opened  with  the  bank. 

A  survey  of  the  banking  system  of  the  Middle  Ages 
would  scarcely  be  complete,  did  we  fail  to  mention  the 
financial  activity  of  the  Templars.  There  must  have 
been  at  least  nine  thousand  of  their  houses  scattered 
throughout  Christendom.  And  at  these  houses  de- 
posits were  received,  advances  made,  and  payments 
made  in  cash  by  important  princes.  Owing  to  the  great 
number  of  the  Templars'  houses  and  to  their  scattered 
position,  they  often  fulfilled  the  functions  of  the 
branches  of  one  great  bank,  and  were  most  useful  inter- 
mediaries in  the  intercourse  engendered  by  the  Crusades 
between  the  East  and  the  West. 

The  second  agency  which  influenced  commerce  was 
the  Jews.  From  the  earliest  times,  the  Jews  have  been 
an  important  factor  in  the  movement  and  development 
of  commerce.  We  gather  from  Cicero's  oration,  Pro 
Flacco,  that  even  in  his  time  the  Jews  had  been  instru- 
mental in  some  very  extensive  transportations  of  bullion. 
Nor  was  their  activity  dormant  during  the  empire,  as  is 
attested  by  the  fact  that  many  of  them,  owing  to  their 
great  wealth,  obtained  the  rank  of  Roman  citizens,  as 
well  as  exemption  from  military  service. 

During  the  Middle  Ages  the  Jews  became  still  more 
potent  in  the  financial  world.  Their  habits  of  saving 
and  their  trained  experience  in  all  sorts  of  business  made 
them  wealthier  every  day.  Then  the  circumstances  of 
the  times  tended  to  throw  the  employment  of  capital 
largely  into  their  hands.  Exclusion,  almost  entire,  from 
the  land  system  of  feudalism  directed  their  energies 


160  Medieval  Period 

largely  to  the  accumulation  of  floating  capital,  and  the 
rigid  laws  against  the  various  forms  of  money-lending 
practically  gave  them  the  monopoly  of  the  money-lend- 
ing business.  What,  perhaps,  more  than  anything  else, 
contributed  to  their  success  as  capitalists,  was  the  won- 
derful spirit  of  unity  and  solidarity  that  reigned  amongst 
them.  They  had  settlements  all  over  Europe ;  they  were 
constantly  traveling,  and  these  circumstances  were  sure 
to  impart  a  thorough  knowledge  of  the  condition  of  the 
general  market  and  the  best  ways  of  laying  out  their 
money. 

It  thus  came  about  that  the  Jews,  even  more  than 
the  banks,  were  the  means  by  which  capital  was  brought 
into  contact  with  labor.  All  important  undertakings, 
including  even  the  Crusades,  were  dependent  upon 
money  advanced  by  the  Jews,  and  there  is  little  doubt 
that  many  of  the  stately  edifices  of  the  Middle  Ages  owe 
their  existence  partly  to  the  same  source. 

Nor  did  the  storms  of  persecution  succeed  in  ex- 
tinguishing them  or  their  financial  activities.  Legal  dis- 
abilities, banishment  from  the  soil,  compulsion  to  wear 
a  particular  garb  and  to  live  in  a  particular  quarter,  and 
wholesale  fines  and  even  massacres,  were  of  frequent  oc- 
currence. But,  collectively,  they  still  remained  in  exis- 
tence. The  persecutions  were  too  intermittent,  and  too 
confined  to  local  areas  at  any  one  particular  time,  to  pro- 
duce their  full  result. 

Moreover,  some  of  the  kings  found  it  convenient  to 
take  the  Jews  under  their  special  protection.  This  was 
especially  the  case  in  France  under  Charlemagne,  Louis 
le  Debonnaire,  and  Charles  the  Bold,  and  in  England 
under  the  first  three  Norman  kings.  In  fact,  up  to  the 
time  of  Edward  I,  they  were  considered  as  the  special 
bondsmen  of  the  king.  He  was  the  absolute  lord  of 


Commerce  and  Industry  of  the  Middle  Ages       161 

their  persons  and  estates,  and  he  allowed  none  to  molest 
them  but  himself.  So  lucrative  a  source  of  wealth  did 
they  become,  that  for  some  time  their  wealth  enabled 
the  king  to  be  independent  of  the  national  will,  and 
under  Henry  II  a  special  branch  of  the  exchequer  was 
devoted  to  the  business  with  the  Jews.  This  branch 
was  called  Scaccarium  Judaismi,  and  its  dealings  entailed 
the  employment  of  a  small  army  of  clerks  and  other 
officials. 

The  third  agency  was  the  monasteries.  This,  the 
third  formative  influence  on  European  commerce 
and  distribution  of  wealth,  has  been  already 
mentioned.  It  has  been  pointed  out  that  the  monks 
spent  most  of  their  time  in  agricultural  industry  and  es- 
pecially in  the  breeding  of  large  flocks  of  sheep.  But 
they  contributed  also  in  other  ways  to  the  general  wealth 
of  the  country  in  which  they  settled.  Large  tracts  of 
land  hitherto  uncultivated  were  reclaimed,  and  what  be- 
fore were  marshes  and  waste  lands  were  made  to  pro- 
duce wheat,  barley,  oats,  beans,  and  other  things  suf- 
ficient not  only  for  their  own  consumption  but  also  for 
that  of  many  other  people. 

The  monasteries  were  also  the  direct  cause  of  the 
great  development  of  the  building  industry.  At  first, 
they  had  almost  the  monopoly,  for  it  was  only  in  the 
later  Middle  Ages  that  the  laymen  began  to  form  them- 
selves into  guilds,  or  brotherhoods  of  masons,  for  the 
purpose  of  aiding  one  another  in  this  industry.  It  is  in- 
teresting to  note,  moreover,  that  the  clergy  themselves 
were  mostly  their  own  architects.  A  lay  architect  was 
quite  the  exception.  Even  as  late  as  the  times  of  Henry 
VII,  the  beautiful  outlines  of  Magdalen  College  tes- 
tify to  the  genius  of  an  ecclesiastical  architect. 

Another  very  important  function  of  the  monasteries 


1 62  Medieval  Period 

of  the  Middle  Ages  was  their  care  for  the  poor.  At 
that  time  there  was  no  poor-law  system.  The  care  of 
the  poor  and  destitute  was  left  almost  entirely  to  pri- 
vate benevolence.  In  most  religious  orders  a  special  rule 
prescribed  the  care  and  relief  of  the  destitute.  Some 
cases  occur  when  even  a  specified  amount  of  the  monas- 
tic income  had  to  be  expended  that  way.  Almost  every 
monastery  had  its  almoner,  whose  special  duty  it  was  to 
give  alms  to  the  poor,  inquiring  diligently,  however,  into 
the  genuineness  of  their  distress.  Much  has  been  said 
regarding  the  defects  of  this  monastic  relief,  arising 
from  a  want  of  general  system  and  the  utter  impossibil- 
ity of  ascertaining  the  truth  of  the  narratives  made  by 
men  who  went  roaming  all  over  the  country.  But  no 
other  way  of  relief  was  possible,  and  the  monastery  in 
the  earlier  Middle  Ages  was  the  only  organization  that 
was  able  in  any  way  to  deal  with  the  ever-present  prob- 
lems of  poverty  and  starvation. 

The  fourth  agency  was  government  control.  This, 
the  fourth  great  influential  factor  in  European  com- 
merce and  distribution  of  wealth,  acted  in  some  ways 
for  good,  and  in  some  ways  for  evil. 

The  activity  of  the  government  generally  inclined  to 
protect  the  purchaser  and  consumer  from  all  forms  of 
dishonesty.  We  have  seen  that  the  English  Government 
required  the  crafts  to  elect  certain  officers  to  see  that 
the  work  sold  should  be  of  a  certain  kind  and  quality. 
Also,  we  have  seen  that  the  prices  of  certain  necessaries 
were  carefully  established  by  law. 

Even  the  industries  themselves  were  often  fostered 
by  government.  This  was  especially  the  case  in  Italy 
when  the  great  republics  paid  special  attention  to  the 
development  of  their  fleets,  and  to  the  improvement  of 
agriculture  on  their  domains.  In  England,  also,  the 


Commerce  and  Industry  of  the  "Middle  Ages  163 

paternal  care  of  the  government  was  exercised  in  regard 
to  all  forms  of  industry.  One  notable  illustration  of 
this  we  have  in  the  various  statutes  that  were  passed, 
allowing  and  encouraging  foreign  merchants  and  manu- 
facturers to  take  up  their  residence  in  the  country. 
While  the  local  merchants  were  bitterly  hostile  to  this 
apparent  intrusion  of  the  foreign  element  which  seemed 
to  threaten  their  monopoly,  the  kings,  having  at  heart 
the  general  welfare  of  the  country,  insisted  on  the  ad- 
mission of  the  foreign  trader.  When,  as  in  1321,  these 
aliens  in  London  were  threatened  and  molested,  the  king 
even  sent  special  writs  to  the  mayor  and  sheriffs,  tell- 
ing them  to  make  proclamation  that  the  king  had  taken 
the  aliens  under  his  special  protection. 

In  other  ways,  however,  government  intervention 
tended  to  restrict  somewhat  the  course  of  trade.  This 
was  done  in  two  ways :  first,  by  narrowing  the  activities 
of  trade,  and,  secondly,  by  directly  limiting  the  amount 
of  merchandise  that  could  be  imported  or  exported.  By 
the  sixteenth  century,  certain  towns  were  appointed 
where  certain  goods  had  to  be  sent  before  they  could  be 
exported.  The  purpose  of  these  towns  was  partly  to 
protect  the  producers  and  exporters,  and  partly  to  se- 
cure the  more  easy  and  rapid  payments  of  the  different 
towns  that  were  due  to  the  king.  Such  towns  often  had 
a  special  jurisdiction  and  organization  of  their  own, 
and  achieved  considerable  importance.  Calais  became 
one  of  the  most  important  of  the  English  staple  towns, 
and  the  office  of  captain  of  the  staple  town  of  Calais  was 
considered  to  be  one  of  the  most  influential  at  the  dis- 
posal of  the  Crown. 

Besides  determining  the  areas  and  channels  of  trade, 
governments  also  marked  out  in  great  measure  its  ex- 
tent. It  is  interesting  to  observe  that,  theoretically,  free 


164  Medieval  Period 

trade  was  upheld  during  the  Middle  Ages.  They  held 
that  the  Creator  purposely  distributed  His  gifts  among 
different  countries  in  order  that  these  countries  might 
give  and  receive  in  exchange.  In  practice,  however,  a 
system  of  protection  was  very  frequently  adopted.  Both 
Italy  and  France  adopted  a  wholesale  system  of  protec- 
tion by  means  of  heavy  export  duties  and  a  most  tyran- 
nical customs  system.  Even  Flanders  endeavored  to 
stamp  out  all  competition,  though  free  trade  was  al- 
lowed in  the  matter  of  cereals. 

Altogether,  the  influence  of  the  government  was  not 
disadvantageous.  In  an  age  when  the  individual  was  so 
weak,  the  assistance  of  the  government  was  needed  in 
order  to  protect  him  from  fraud  and  oppression.  What 
errors  there  were  rose  mainly  from  the  unadvanced  con- 
dition of  the  economic  science  of  the  times.  It  was  not 
yet  perceived  that,  very  often,  even  local  interests  are 
better  served  by  allowing  trade  to  follow  its  natural 
channels,  and  that  often  the  best  means  of  procuring 
the  welfare  of  all  is  to  allow  full  scope  to  the  laws  of 
competition  and  of  the  relations  between  supply  and  de- 
mand. 


CHAPTER  V 

INFLUENCE   OF   THE    ECONOMIC    ELEMENT   ON 
MEDIEVAL   HISTORY 

THE  nature  of  medieval  history  and  the  relation  be- 
tween medieval  times  and  the  economic  element  differ 
considerably  from  those  of  ancient  history.  Medieval 
history  is  very  much  more  complicated.  It  is  a  presen- 
tation of  many  different  activities,  going  on  at  the  same 
time  in  different  areas,  and  of  many  currents  of  human 
activity,  at  times  blended  together  into  the  same  stream, 
and  at  other  times  pursuing  their  own  course  separately. 
If,  however,  we  try  to  view  medieval  history  as  a 
whole,  we  shall  find  certain  general  movements  that  not 
only  characterize  the  Middle  Ages,  but  are  also  inti- 
mately connected  with  the  development  of  the  modern 
States.  Such  movements  as  the  construction  of  Europe 
after  the  formation  of  the  separate  barbarian  kingdoms, 
the  conflict  between  empire  and  Papacy,  the  gradual  ac- 
quisition of  political  power  by  the  middle  classes,  as 
well  as  the  political  equilibrium  of  power  when  the 
separate  nations  had  attained  to  a  certain  development 
— all  these  broad  movements  can  be  clearly  discerned 
throughout  the  continual  local  agitations  that  were 
going  on  in  different  areas. 

It  is,  therefore,  to  these  broad,  general  movements 
that  we  shall  chiefly  direct  our  attention.  Not  only  are 
they  important  in  themselves,  but  they  are  also  a  gen- 
eral expression  even  of  many  of  the  lesser  movements 
that  make  up  the  history  of  that  time. 

There  is  a  great  and  fundamental  difference  between 
the  formative  influence  of  the  economic  element  in  an- 


1 66  Medieval  Period 

cient  and  medieval  history.  In  the  former,  the  economic 
activities  are  comparatively  simple,  their  issues  are  clear, 
and  their  relations  with  the  main  movements  of  the 
times  are  sharply  and  clearly  defined. 

Thus,  the  economic  distress  of  Athens  at  the  time  of 
Solon  had  only  one  kind  of  relation  with  the  Solonian 
legislation,  and  in  the  history  of  Rome  the  agrarian 
and  industrial  problems  all  exercised  the  same  constant 
and  uniform  kind  of  influence.  There  were  scarcely 
ever  economic  activities  pulling  in  different  ways. 

Far  otherwise  was  it  during  the  Middle  Ages.  There 
we  find  the  economic  elements  both  many  and  of  a  very 
diversified  nature.  Not  only  did  some  of  these  exercise 
an  influence  in  entirely  opposite  directions,  but  occasion- 
ally the  same  economic  element  would  exercise  quite  a 
different  influence  in  different  countries  and  times. 

As  one  illustration  among  many,  we  might  point  out 
the  divergent  influences  of  the  feudal  element  and  of 
the  towns.  While  feudalism  generally  tended  in  the  di- 
rection of  decentralization,  namely,  to  make  the  local 
barons  and  magnates  independent  of  the  king,  the 
towns,  in  some  countries,  tended  to  thwart  this  influence, 
and,  as  happened  in  France,  they  frequently  became  the 
most  powerful  agency  in  the  spread  of  a  strong  and  cen- 
tralized government.  Then,  if  we  fix  our  attention  even 
on  the  towns  alone,  we  find  that  while  in  Italy  they  op- 
posed, in  France  they  upheld,  the  royal  power. 

Evidently  the  bearing  of  economics  on  medieval 
history  cannot  receive  that  simple  treatment  and  pres- 
entation as  is  possible  in  ancient  history.  It  would 
be  impossible  to  label  each  political  movement  with  its 
own  economic  label.  And  yet,  economic  causes  are  as 
equally  powerful  in  medieval  history  as  in  the  history 
of  ancient  Greece  and  Rome.  Without  the  economic 


Influence  of  the  Economic  Element  167 

factor  in  medieval  history,  Europe  would  not  have 
been  what  it  was,  nor  would  it  present  the  same  spec- 
tacle that  it  does  to-day. 

As  the  combined  action  of  sea,  sky,  and  air  all  concur 
in  determining  the  shape  and  condition  of  any  piece  of 
land,  so,  in  the  Middle  Ages,  the  combined  and  varied 
activity  of  diverse  economic  agencies  all  united  in  pro- 
ducing one  definite  result. 

In  the  following  pages,  therefore,  we  shall  show  how 
the  medieval  political  movements  derived  their  initiation 
and  peculiar  character  from  economic  factors,  and  at 
the  same  time  we  shall  endeavor  to  show  what  was  the 
precise  part  taken  by  each  economic  element  in  the  con- 
struction of  medieval  Europe  and  in  the  guidance  of  its 
most  important  political  movements.  The  first  great 
movement,  both  in  the  chronological  as  well  as  in  the 
logical  order,  is  that  of  the 

CONSTRUCTION  OF   EUROPE 

By  the  end  of  the  seventh  century,  the  barbarian  in- 
vasions of  Europe  had  accomplished  their  purpose. 
The  political  power  of  ancient  Rome  had  been  swept 
away  and  all  over  Europe  there  had  been  set  up  Chris- 
tianized Barbarian  Kingdoms.  In  all  these,  there  could 
be  discerned  some  form  of  constitutional  government, 
endowed  with  more  or  less  strength.  In  Italy,  we  see 
Theodoric,  the  chief  of  the  Ostrogoths,  ruling  both  his 
own  people  and  the  Romans  with  a  firm  hand,  advancing 
the  national  prosperity  of  the  country  and  even  dream- 
ing of  a  pan-Germanic  alliance.  In  France,  we  see  es- 
tablished the  Merovingian  kingdom,  extending  its  sway 
over  both  sides  of  the  Rhine,  and  preserving  law  and 
order  by  the  nominal  power  of  the  Diet  and  by  the  very 


1 68  Medieval  Period 

real  power  of  the  Merovingian  king.  In  England,  the 
Anglo-Saxon  settlement  had  been  already  an  accom- 
plished fact,  and  we  behold  the  great  struggle  for  su- 
premacy between  the  Northern,  Middle,  and  Southern 
Kingdoms. 

And  yet,  the  nations  of  Europe  remained  in  a  very 
fluid  and  helpless  condition.  They  were,  as  yet,  far 
from  having  reached  a  condition  of  solidarity  and 
strength.  A  strong  ruler  like  Theodoric,  or  Pepin,  or 
Alfred,  might  indeed  impart  a  temporary  unity  and 
strength,  but  in  the  nations  themselves  there  was  very 
little  organic  unity  and  independent  vigor. 

It  was  extreme  pressure  from  without  that  hastened 
the  process  of  growth  and  solidification.  Toward  the 
beginning  of  the  tenth  century,  there  took  place  the  ter- 
rible invasions  of  the  Northmen  and  Danes.  From  the 
recesses  of  Norway  and  Denmark,  these  fierce  barbar- 
ians, whose  breasts  were  steeled  against  every  feeling  of 
pity,  dashed  themselves  against  the  still  weak  nations  of 
Southern  Europe.  In  their  light  craft  they  braved  the 
perils  of  the  sea,  and  ascending  the  rivers  and  streams, 
burned  and  pillaged  without  fear  or  discrimination. 

Besides  these  Northern  foes,  there  were  also  other 
barbarians  appearing  from  the  East  and  South.  There 
were  the  Hungarians  from  the  Danubian  plains,  the 
Wends  from  the  banks  of  the  Elbe  and  the  shores  of 
the  Baltic,  and,  finally,  the  heathen  Saracens,  filled  with 
hatred  of  Christianity  and  irresistible  enthusiasm. 

Europe  seemed  on  the  point  of  annihilation.  The 
work  of  the  last  four  centuries  seemed  on  the  point  of 
completely  collapsing,  when  suddenly  the  peril  became 
the  cause  of  its  own  antidote.  Already  we  have  pointed 
out  that  the  small  peasants  of  Europe,  and  all  those 
who  found  themselves  defenseless,  huddled  for  protec- 


Influence  of  the  Economic  Element  169 

tion  around  some  powerful  lord  or  magnate  who,  in  re- 
turn for  the  ownership  of  their  land  and  enjoyment  of 
their  services,  undertook  to  give  them  protection  and 
government. 

It  was  this  system  of  feudalism,  brought  about  mainly 
by  external  pressure,  that  caused  the  rehabilitation  of 
Europe.  Against  the  common  enemy,  Europe  now 
stood  up,  both  united  and  armed.  In  every  land  there 
were  castles  and  strongly  fortified  places  to  which  the 
people  could  fly  for  refuge,  and  in  every  land  there  was 
an  army  to  beat  off  the  invader.  It  is  true  that  there  was 
no  standing  army  in  our  modern  sense  of  the  word.  But 
there  were  the  huge  feudal  levies  all  raised  and  com- 
manded by  a  coordinated  hierarchy  of  officials,  and 
never  completely  disbanded.  It  was  an  army  that  was 
created  by  the  necessities  of  the  environment,  and  none 
better  could  be  found  to  ward  off  the  spasmodic  and 
frequent  attacks  of  the  enemy. 

Strength  and  swiftness  were  the  two  qualities  most 
essential  for  the  medieval  army,  and  these  two  qualities 
were  supplied  by  the  typical  institutions  of  feudalism, 
namely,  the  castles  and  the  knights,  or  mounted  horse- 
men. While  the  castles  were  nuclei  of  defense,  the  cav- 
alry could  attack  and  pursue  the  flying  enemy.  Europe 
was  thus  saved  from  the  invader.  But  she  was  saved 
by  feudalism  from  an  even  still  greater  danger,  namely, 
from  internal  anarchy  and  confusion.  Oftentimes,  when 
societies  have  been  on  the  verge  of  dissolution,  the  land 
has  formed  a  tie  such  as  could  not  be  supplied  either  by 
family  relationship,  or  race  feeling,  or  past  tribal  tradi- 
tions. Even  such  a  prosaic  economic  factor  as  land 
has  often  thus  become  the  cradle  of  all  the  grand  tradi- 
tions of  the  Fatherland.  This  was  the  case  in  England 
when  the  rapidly  growing  tribes  of  the  Anglo-Saxons 


170  Medieval  Period 

exchanged  the  tie  of  family  kinship  for  the  wider  and 
more  enduring  tie  of  land  with  all  its  associations,  while 
in  Switzerland  and  Germany  we  find  examples  still 
more  conspicuous  of  this  unifying  power  of  land. 

Under  the  peculiar  influence  of  feudalism,  the  land 
in  a  new  and  special  manner  admirably  fulfilled  this  im- 
portant function  of  bringing  together  all  the  different 
individuals  and  sections  of  society.  How  this  was  done 
we  have  already  explained  in  dealing  with  the  nature  of 
feudalism,  but  we  still  have  to  show,  in  greater  detail, 
how  this  economic  element  of  feudalism  acted  on  the 
political  fortunes  of  the  European  nations.  In  doing 
so,  we  shall  find  that  the  unifying  influence  of  feudalism 
was  not  altogether  constant — that  while,  in  the  early 
period  of  danger  and  invasions,  it  united  Europe 
against  the  common  invader,  yet  that,  in  many  countries, 
it  afterwards  baffled  and  almost  undid  its  own  purpose 
by  weakening,  rather  than  by  strengthening,  the  girdling 
ties  of  a  centralized  government. 

From  the  very  beginning  of  feudalism,  two  distinct 
principles  of  activity  began  to  manifest  themselves — 
these  were  the  national  principle  and  the  separatist 
principle.  Even  the  king  of  the  nation  embodied  in 
himself  these  two  principles.  For  he  was  chief  feudal 
landowner  and,  at  the  same  time,  endowed  with  sov- 
ereignty over  all  the  nation.  In  the  former  capacity, 
he  was  subject  to  all  the  limits  imposed  upon  him  by 
feudalism,  while  in  the  latter,  his  jurisdiction  overleaped 
the  boundaries  that  were  set  up  by  the  feudal  local  areas 
of  jurisdiction.  Generally,  it  was  as  the  chief  feudal 
landowner  that  the  man  became  king,  and  then,  when 
he  had  once  grasped  the  reins  of  power,  we  find  the 
royal  element  conflicting  with  the  feudal  element,  the 
king  endeavoring  to  make  his  royal  national  jurisdic- 


Influence  of  the  Economic  Element  171 

tion  assert  itself  over  the  system  of  which  he  himself 
had  been  and  was  still  so  prominent  a  member.  Thus, 
in  France,  Hugh  Capet,  duke  of  the  French,  even  dur- 
ing the  weak  reign  of  the  last  Merovingian  kings, 
wielded  the  practical  power.  He,  as  chief  feudal  land- 
owner, was  more  powerful  than  the  puppet  king,  and  it 
was  his  strong  feudal  position  that  enabled  him  to  as- 
cend the  throne.  But  when  his  accession  was  accom- 
plished, we  behold  the  king  reasserting  in  himself  the 
national  principle,  and  the  monarchical  influence  grad- 
ually prevailing  over  that  of  the  local  baron.  Similarly, 
in  Germany,  it  was  the  strong  local  territorial  position 
of  Henry  the  Fowler  that  made  him  king,  yet  it  was 
always  the  great  problem  of  himself  and  his  successors 
how  to  break  down  the  isolation  and  independence  of 
the  other  great  German  duchies. 

It  is  this  dual  activity  of  feudalism  that  so  compli- 
cates its  action  on  the  political  history  of  medieval  Eu- 
rope. Feudalism  seemed  at  the  same  time  to  unite  and 
to  tear  asunder.  And  yet,  the  resultant  action  was  har- 
monious and  would  have  been  the  same  in  all  the  coun- 
tries of  Europe,  had  there  not  been  present  other  ele- 
ments that  entered  into  the  struggle  and  strengthened 
one  or  the  other  of  these  two  conflicting  tendencies.  We 
can,  however,  see  this  clearly  only  by  examining  singly 
the  most  important  nations,  and  tracing,  step  by  step, 
the  full  working  of  the  feudal  element. 

Powerful,  indeed,  had  been  the  position  of  Hugh 
Capet  as  duke  of  the  French.  His  domains  included 
not  only  the  Gaulish  regions,  north  of  the  Seine,  but 
also  the  district  between  the  Seine  and  the  Loire,  even 
as  far  west  as  the  county  of  Maine.  His  jurisdiction 
and  wealth  were  also  proportioned  to  his  domains. 

When  he  became  king,  considerable  additions  were 


172  Medieval  Period 

made,  not,  however,  of  a  very  tangible  nature.  In  re- 
gard to  financial  power,  he  was,  as  king,  almost  entirely 
indigent,  being  dependent  mainly  upon  what  could  be 
collected  from  such  insignificant  sources  as  tolls  and 
revenues  derived  from  vacant  ecclesiastical  benefices. 
But  he  had  one  great  advantage  in  the  prestige  and  in 
the  grand  traditions  that  still  hovered  round  the  name 
and  office  of  king;  and,  above  all,  there  was  the  in- 
fluence of  the  Church.  Not  only  was  the  coronation  of 
the  king  regarded  as  a  very  sacred  act,  but  everywhere 
throughout  France  there  were  enormous  ecclesiastical 
temporalities  which  were  never  altogether  feudal,  and 
these  regarded  the  king  as  their  special  lord  and  pro- 
tector. 

The  exact  balance  between  the  king's  power  and  the 
opposition  of  the  independent  feudal  elements  was  al- 
ways very  hard  to  determine.  The  land  that  was  held 
in  feudal  tenure  was  certainly  a  very  strong  disintegra- 
ting element.  The  owner  of  such  land  derived  from  it, 
and  not  from  the  king,  any  title  of  nobility  and  office 
that  he  might  possess.  He  could  in  early  years  defy  the 
general  ordinance  of  the  king,  and  legislate  for  his  own 
domain ;  he  could,  on  failure  to  obtain  redress,  even  bid 
mortal  defiance  to  his  sovereign;  he  enjoyed  civil  and 
criminal  jurisdiction  in  his  territory,  and  in  most  cases 
enjoyed  the  right  of  coining  money  without  need,  as  in 
England,  of  the  king's  stamp  and  supervision. 

Evidently,  these  things,  in  the  early  years  of  French 
history,  must  have  been  very  serious  obstacles  to  the 
royal  power.  But  gradually  there  appeared  fresh  ele- 
ments, whose  collective  weight  was  on  the  side  of  royal 
authority  and  tended  to  neutralize  to  some  extent  the 
decentralizing  effects  of  the  economic  element  of  feu- 
dalism. 


Influence  of  the  Economic  Element  173 

Even  from  the  very  beginning,  the  law  of  primogeni- 
ture was  not  so  severe  as  in  England.  Thus,  in  the  big- 
ger fiefs,  some  provision  had  to  be  made  in  money  for 
the  benefit  of  the  younger  sons,  while  in  the  lesser  fiefs 
even  the  land  itself  might  be  divided.  Naturally,  this 
tended  to  the  gradual  paring  away  of  the  big  estates  and 
the  enrichment  of  the  lesser  holders.  The  result  was 
that  the  Crown  was  placed  in  a  position  of  great  safety, 
for  less  danger  was  to  be  apprehended  from  the  scat- 
tered, small  units  than  from  great,  territorial  estates, 
all  united  and  wielded  by  one  powerful  lord. 

Then,  there  were,  also,  certain  councils,  both  sum- 
moned and  controlled  by  the  king,  and  their  collective 
action  tended  to  neutralize  the  insular  activity  of  some 
of  the  powerful  barons.  Thus,  there  was  the  supreme 
judicial  tribunal,  over  which  the  king  was  president,  and 
in  which  alone  could  be  tried  the  chief  barons  of  the 
realm.  By  degrees  the  introduction  into  the  court  of 
councilors  of  lower  rank,  appointed  by  the  king,  insen- 
sibly diminished  its  exclusively  baronial  character,  and 
caused  it  to  assume  the  nature  of  a  systematic  tribunal. 

There  were  also  the  meetings  of  the  barons.  Some 
of  these  meetings  were  general  and  accompanied  with 
great  pomp  and  solemnity,  while  others  were  only  par- 
tial. It  is  true  that  the  king's  authority  over  these  was 
at  first  very  limited  and  that  nothing  could  be  done  in 
the  lord's  own  domain  without  his  consent,  yet  these 
councils  became  convenient  instruments  in  the  hands 
of  powerful  kings.  They  prepared  the  way  for  the  for- 
mation and  development  of  councils  of  the  realm,  and 
of  a  ministry  that  would  be  perfectly  dependent  upon 
the  king.  Such  submissive  councils,  for  example,  were 
the  Great  Administrative  Council  under  St.  Louis,  and 
the  Parlement,  or  king's  judicial  tribunal. 


174  Medieval  Period 

Another  very  important  council  which  tended  to  undo 
the  effects  of  the  local  land  system  was  that  of  the 
townsmen  or  burgesses.  It  was  the  urgent  need  of 
money  that  impelled  Philip  the  Fair,  in  1302,  to  sum- 
mon the  representatives  of  the  Third  Estate,  and  the 
effect  of  this  was  almost  as  important  as  was  that  of  the 
summoning  of  the  citizens  and  burgesses  in  England 
under  Simon  de  Montfort.  It  marked  the  rise  of  the 
Third  Estate  in  France,  whose  power  formed  a  counter- 
balance to  the  power  of  the  nobles,  whose  feudal  juris- 
diction was  already  fast  declining. 

This  summoning  of  the  Third  Estate  combined  with 
the  other  causes  already  mentioned  to  effect  the  over- 
throw of  the  feudal  power.  And  it  is  thus  interesting 
to  observe  that,  while  the  economic  element  of  feudalism 
tended  to  thwart  the  centralizing  tendency  of  royal  au- 
thority, the  other  economic  element  of  the  towns  be- 
came a  very  powerful  instrument  in  spreading  the  royal 
central  authority. 

Finally,  the  sagacious  policy  of  the  French  kings 
themselves  took  advantage  of  the  very  nature  of  feudal- 
ism to  effect  its  overthrow.  The  feudal  estates  were  the 
personal  appanages  of  the  owners.  They  could,  there- 
fore, be  made  to  coalesce  by  the  marriage  of  the  land- 
owners. Both  Louis  VIII  and  Louis  IX  availed  them- 
selves of  this,  and,  by  effecting  matrimonial  alliances 
between  members  of  the  royal  family  and  the  owners  of 
powerful  dukedoms,  managed  to  draw  these  posses- 
sions within  the  vortex  of  the  royal  jurisdiction.  In  this 
way,  the  lands  of  Auvergne,  Toulouse,  and  Provence 
became  part  of  the  royal  domain,  and  the  skilful  policy 
of  kings,  in  organizing  a  centralized  system  of  adminis- 
trative, judicial,  and  financial  administration,  completely 
absorbed  and  consolidated  what  had  been  thus  acquired. 


Influence  of  the  Economic  Element  175 

By  the  end  of  the  fifteenth  century,  therefore,  the  de- 
centralizing influence  of  feudalism  had  ceased.  The 
local  areas  of  the  land  now  formed  part  of  one  general 
system  under  royal  control.  Feudalism  had  accom- 
plished its  mission,  and  nothing  of  it  remained  save  a 
few  vestiges  that  were  completely  swept  away  by  the 
French  Revolution. 

In  Germany,  we  behold  a  process  quite  the  reverse  of 
that  which  was  taking  place  in  France.  While,  in  the 
latter  country,  we  find  the  feudal  system  opposing  the 
central  authority,  and  the  towns  upholding  it,  we  see 
in  Germany  that  the  emperors  regarded  the  feudal  sys- 
tem rather  as  their  most  valuable  ally,  and  that  the 
towns  were  the  main  instrument  in  opposing  the  author- 
ity of  the  emperors. 

Feudalism  was  of  a  much  later  growth  in  Germany 
than  in  France.  What  divisions  there  were  ran  chiefly 
on  racial  lines.  The  chief  duchies  were  those  of  Sax- 
ony, Franconia,  Suabia,  and  Bavaria,  and  thdse  were 
grouped  together  so  as  to  form  one  confederation.  This 
confederation  was  of  a  very  peculiar  character.  Owing 
to  the  absence  of  very  strong  racial  differences,  and  to 
the  fact  that  the  racial  element  did  not  coincide  with  the 
demarcations  of  land,  we  find  in  the  confederation  a  con- 
siderable amount  of  plasticity.  Apparently,  not  much 
effort  would  have  been  required  to  weld  the  duchies  into 
one  united  kingdom.  Such,  indeed,  was  the  frequent 
aim  of  the  German  kings  and  emperors.  But  other  ele- 
ments fatally  intervened.  Family  hatreds,  divergences 
of  language,  the  old  traditional  hostility  between 
North  and  South,  and  the  meddling  interference  of  the 
emperors  in  Italy — all  these  conspired  together  to 
thwart  any  project  of  an  immediate  unification  of  Ger- 
many. 


176  Medieval  Period 

When,  however,  the  Emperor  Barbarossa  seriously 
girded  himself  for  the  task  of  uniting  Germany,  he  tried 
to  make  use  of  feudalism  as  his  chief  instrument.  In 
the  personal  oath  of  allegiance  to  himself,  and  in  all  the 
financial  and  military  ties  of  feudalism,  he  beheld  im- 
mense possibilities.  His  first  endeavor,  therefore,  was 
to  hasten  and  spread  everywhere  throughout  Germany 
the  movement  of  feudalism.  Hitherto,  side  by  side  with 
feudal  territories,  there  had  lain  strips  of  allodial  pos- 
sessions. Barbarossa  tried,  as  far  as  possible,  to  con- 
vert the  allodial  property  into  fiefs,  and  to  bring  the 
whole  land  under  his  sway  by  the  feudal  allegiance  that 
would  be  due  to  him.  He  also  insisted  very  strongly 
upon  the  exact  fulfilment  of  all  personal  obligations 
owed  to  him  by  his  feudal  tenants.  What  more  drastic 
proof  of  this  could  we  find  than  his  letter  to  the  Count 
of  Forcalquier  that  "he  has  contumaciously  neglected 
to  come  to  our  court,  and  to  receive  his  benefice  from  our 
hands.  His  country  has,  by  a  just  sentence,  been  so  ad- 
judged to  us  that  we  may  do  with  it  what  we  will"  ? 

To  a  certain  extent,  Barbarossa  was  successful.  Un- 
fortunately, however,  the  strands  of  feudalism  were 
not  strong  enough  to  connect  the  violent  German  feuds 
with  their  liege  sovereign.  Only  small  provocation  was 
needed  to  cause  the  duke  or  baron  to  throw  off  his  prom- 
ise of  allegiance.  Even  during  the  strong  reigns  of 
Henry  VI  and  Frederick  II,  the  principalities  of  Ger- 
many remained  wilful  and  turbulent. 

While,  however,  feudalism,  in  the  German  posses- 
sions of  the  emperor,  appears  as  an  inefficient  instru- 
ment for  establishing  the  royal  central  authority,  it  ap- 
pears in  Italy  under  another  aspect;  namely,  as  the  im- 
portant obstacle  to  the  royal  jurisdiction.  This  was 
during  the  reign  of  Frederick  II.  This  eccentric  and, 


Influence  of  the  Economic  Element  177 

sometimes,  inconsistent  emperor  seemed  for  a  time  to 
recognize  the  practical  impossibility  of  establishing  a 
royal  bureaucracy  in  Germany,  and  sought  compensation 
by  setting  up  a  despotic  system  of  administration  in 
Naples  and  Sicily.  Here,  he  was  opposed  both  by  feu- 
dalism and  by  the  great  and  opulent  cities.  But  the 
skill  and  energy  of  Frederick  triumphed  over  all.  Feu- 
dal castles  were  either  destroyed  or  occupied  by  royal 
garrisons;  feudal  tribunals  of  justice  were  replaced  by 
the  royal  courts,  and  even  the  strong  feudal  prelates 
were  compelled  to  content  themselves  with  their  spirit- 
ual functions,  while  the  towns  were  too  powerless  to 
make  any  resistance. 

Peculiar,  indeed,  was  the  part  taken  by  the  economic 
element  in  the  empire.  In  Germany,  we  see  feudalism 
apparently  about  to  become  an  instrument  in  the  con- 
solidation of  the  kingdom,  and  then  exercising  an  ac- 
tivity in  the  opposite  direction,  while,  in  Naples  and 
Sicily,  it  was  all  along  diametrically  opposed  to  the 
formation  of  a  centralized  royal  government. 

Before  leaving  those  countries  that  were  more  or 
less  directly  under  imperial  control,  we  must  first  con- 
sider what  were  the  prospects  of  the  consolidation  of 
Italy.  Of  this,  there  could  scarcely  have  been  any  hope. 
From  the  very  first,  Italy  had  become  a  prey  to  many 
different  invaders,  who  successfully  effected  a  settlement 
on  Italian  soil.  The  Greeks,  the  Lombards,  the  Nor- 
mans, and  the  Saracens,  all  these  contended  for  the  mas- 
tery, and  at  the  same  time  the  emperor  in  Germany 
vainly  strove  to  assert  his  authority,  which,  except  in 
Rome,  was  practically  only  nominal. 

The  economic  elements  were  also  opposed  to  any 
form  of  centralized  government.  During  the  early 
period  of  the  Middle  Ages,  the  towns  had  been  the  in- 


178  Medieval  Period 

struments  of  organized  government  throughout  Italy. 
Ruled  very  often  by  the  bishop,  they  asserted  their  juris- 
diction and  enforced  law  and  order  in  the  vast  areas  of 
territory  that  lay  outside  the  city  walls.  It  is  possible 
that,  had  the  rule  of  the  bishops  continued,  the  continu- 
ity of  the  ecclesiastical  system  might  have  welded  to- 
gether the  towns  in  such  a  way  as  to  bring  about  a  gen- 
eral unity.  But,  before  long,  the  reins  of  power  slipped 
from  the  hands  of  the  bishops  into  the  hands  of  the 
townsmen  themselves.  Various  causes  contributed  to 
this.  Among  the  most  important  was  the  fact  that  the 
bishops  were  elected  by  the  citizens,  and  that  the  very 
nature  of  the  episcopal  office  prevented  the  bishops  from 
continually  exercising  that  hard  and  ruthless  authority 
which  was  so  necessary  in  turbulent  times.  Then  again, 
the  towns  had  been  built  for  the  purpose  of  warding 
off  barbarian  invasions,  and  were  therefore  especially 
able  to  fight  against  any  outside  power  that  should  try 
to  force  itself  upon  them. 

By  the  middle  of  the  twelfth  century,  the  Lombard 
cities  had  practically  asserted  their  independence,  and 
were  behaving  as  so  many  separate  States.  In  vain  did 
the  emperors  seek  to  enforce  their  jurisdiction.  Their 
hands  were  too  much  tied  by  disputes  in  their  own  coun- 
try, and  such  symbolic  acts  of  sovereignty,  as  their  names 
appearing  in  the  public  acts  and  upon  the  coins,  were 
very  little,  in  comparison  with  the  active  power  enjoyed 
by  the  towns  to  make  war  or  declare  peace. 

The  towns,  as  we  shall  see  more  fully  in  the  next 
section,  succeeded  in  obtaining  their  full  independence 
to  such  an  extent  that  the  history  of  Italy  down  to  the 
nineteenth  century  is  a  history  of  separate  City-States. 

Nor  did  the  economic  element  of  feudalism  act  in  a 
different  direction  from  that  of  the  towns.  For  in  Italy 


Influence  of  the  Economic  Element  179 

feudalism  was  in  a  much  looser  condition  than  it  was  in 
France  or  even  in  Germany.  Not  only  was  the  strife 
between  the  barons  more  rampant,  but  the  lesser  ten- 
ants more  easily  shook  off  their  allegiance  to  their  im- 
mediate superiors.  Concerted  action  among  the  feudal 
landowners  was,  therefore,  rendered  extremely  difficult. 
And  in  the  course  of  long  wars  between  the  Papal  and 
the  imperial  parties,  feudalism  became  completely  swept 
away  by  the  overshadowing  power  of  the  towns. 

In  Italy,  therefore,  we  see  the  economic  element  of 
the  towns  successfully  exercising  its  disintegrating  in- 
fluence. Neither  the  centralizing  influence  of  the 
Papacy,  nor  that  of  the  imperial  authority,  succeeded 
in  grasping  and  wielding  that  force  which,  in  France, 
and  partly  in  England,  was  the  main  instrument  in  the 
extension  of  unity  and  central  power. 

The  only  country  where  we  see  both  feudalism  and 
the  towns  working  together  for  the  consolidation  of 
the  kingdom  and  for  a  centralized  authority  is  Eng- 
land. 

This  was  mainly  owing,  as  we  have  already  sug- 
gested, to  the  vigorous  policy  of  William  of  Normandy. 
He  had  seen  too  clearly  the  evils  that  had  been  wrought 
in  France  by  the  frequent  insubordination  of  the  vas- 
sals. He  also  perceived  its  remedy,  and  was  quick  to 
apply  it.  Instead  of  the  inferior  vassals  and  tenants 
taking  the  oath  of  allegiance  directly  to  their  immediate 
lord,  they  were  required  to  take  an  oath  of  allegiance 
directly  to  the  king.  Thus,  the  bigger  barons  could  no 
longer  hurl  the  military  forces  of  their  tenants  against 
the  king.  Feudalism,  by  this  means,  became  no  longer 
a  decentralizing  force,  but  rather  one  of  the  strongest 
bonds  of  unity. 

During  the  reigns  of  William  II  and  of  Stephen, 


i8o  Medieval  Period 

the  feudal  barons  did  indeed  seek  to  emancipate  them- 
selves from  the  national  system,  and  to  make  themselves 
so  many  independent  sovereigns.  This,  however,  was 
rather  in  defiance  of  the  feudal  system,  than  by  coopera- 
tion with  its  natural  tendency.  In  any  case,  the  king 
threw  himself  upon  the  support  of  the  great  bulk  of 
his  subjects,  and  with  an  iron  hand  crushed  the  con- 
spiracy of  the  nobles. 

During  the  reign  of  Stephen,  they  used  the  anarchy 
of  the  times  for  their  own  advantage.  Baronial  castles 
became  centers  of  brigandage  and  oppression,  and  the 
law  for  a  time  was  dwarfed  by  individual  tyranny. 
When  once,  however,  order  was  restored,  the  "unlaw- 
ful" castles  were  razed  to  the  ground,  while  the  wisdom 
of  Henry  I,  by  his  celebrated  Charter  of  Liberties,  both 
checked  the  abuses  connected  with  the  oppression  of  the 
barons,  and  secured  the  good-will  of  the  people  by  de- 
tailed provisions  of  good  government. 

All  through  the  pages  of  English  history,  we  find  that 
the  collective  tendency  of  the  English  feudalism  was  in 
the  direction  of  centralization.  It  interfered  in  no  way 
with  the  local  courts  of  the  realm  or  with  the  general 
system  of  administration  and  justice.  On  the  other 
hand,  it  served  for  a  considerable  time  as  one  of  the 
most  available  means  of  procuring  money  for  the  royal 
treasury,  and  of  rallying  around  the  throne  the  military 
resources  of  the  country. 

The  towns  also  played  a  very  important  part  in  the 
central  administration  of  the  kingdom.  They  never 
stood  apart  by  themselves  as  did  the  towns  in  the  Con- 
tinental countries.  Even  from  early  times,  they  had 
sent  their  representatives  to  the  shire-mote,  and  had 
taken  part  in  its  legislative  and  judicial  business,  and 
from  early  times  as  well,  the  towns  had  also  been  con- 


Influence  of  the  Economic  Element  181 

nected  with  the  Crown,  both  by  the  patronage  afforded 
them  by  the  king,  and  by  the  money  which  they  con- 
tributed to  his  coffers.  When  Simon  de  Montfort,  hold- 
ing for  a  time  the  direction  of  affairs,  summoned  to 
Parliament  the  representatives  of  the  citizens  and  bur- 
gesses, he  systematized  still  further  the  activities  that 
connected  the  towns  with  the  central  system. 

The  towns  in  England  became  part  of  the  one  great 
national  system.  They  were  as  so  many  healthy  cells  of 
the  same  organism,  and  never  did  they  exercise  that 
disintegrating  influence,  such  as  we  too  often  find  on  the 
Continent. 

Thus  far,  we  have  passed  in  brief  review  the  process 
of  the  formation  and  solidification  of  the  most  impor- 
tant countries  of  medieval  Europe.  The  result  has  been 
to  demonstrate  the  tremendous  importance  of  the 
economic  factors  of  feudalism  and  of  the  towns.  It  was 
these  elements  that  shaped  the  whole  course  of  history 
in  medieval  Europe,  and  even  to  this  day  can  be  dis- 
cerned certain  vestiges  of  those  forces  that  often,  ap- 
parently acting  at  random,  succeeded  in  producing  very 
definite  and  far-reaching  results. 


CHAPTER  VI 

INFLUENCE  OF  THE  ECONOMIC   ELEMENT  IN  THE 

CONTEST  BETWEEN  THE  EMPIRE  AND 

THE   PAPACY 

THE  struggle  between  the  empire  and  the  Papacy  that 
convulsed  Germany  and  Italy  for  nearly  two  hundred 
years,  and  made  itself  slightly  felt  even  in  England 
and  France,  began  with  the  accession  of  Pope  Gregory 
VII.  The  nature  of  the  issues  that  were  at  stake  de- 
mands careful  consideration,  and  this  will  very  soon  re- 
veal that  while,  on  the  one  hand,  rival  jurisdictions  were 
greatly  responsible  for  the  struggle,  the  economic  ele- 
ment always  played  a  very  important  part. 

There  was,  indeed,  the  old  question  which  even  in  our 
own  times  has  hardly  received  a  satisfactory  solution, 
namely,  "Is  the  Church  in  the  State,  or  is  the  State  in 
the  Church?"  Although  the  Church  and  the  State  are 
two  distinct  societies,  having  special  ends  of  their  own 
and  special  means  for  those  ends,  yet,  in  some  respects, 
they  touch  and  apparently  overlap  one  another.  For 
the  State  is  always  under  the  obligation  of  remember- 
ing that  the  temporal  welfare  of  its  members,  and  all 
its  temporal  regulations,  must  be  subordinate  to  the  law 
of  God  and  to  the  spiritual  welfare  of  mankind.  Also, 
there  are  some  things  whose  administration  concerns 
both  the  Church  and  the  State.  Thus,  the  sacrament 
of  Marriage  is  both  a  civil  contract  and  also  a  sacra- 
ment. In  this  way,  it  is  easy  to  see  how  opposite  views 
and  claims  might  very  easily  arise. 

This  was  especially  so  in  the  Middle  Ages.  The 
Holy  Roman  Empire  was  supposed  to  be  one  society, 


Influence  in  Contest  of  Empire  and  Papacy     183 

governed  both  by  the  Pope  and  by  the  emperor.  Impor- 
tant boundary  lines  between  Church  and  State  were 
most  easily  overlooked,  and,  therefore,  there  arose  the 
quick  and  natural  question  as  to  who  should  be  the  su- 
preme leader  of  this  identical  society.  The  views  of  the 
Sovereign  Pontiff  were  clearly  expressed  in  the  words  of 
Pope  Gregory,  who  compared  the  emperor  to  the  moon 
and  himself  to  the  sun,  both  shining  in  the  same  firma- 
ment. Nor,  on  the  other  hand,  was  it  unnatural  if  the 
emperor  held  views  of  a  somewhat  opposite  nature. 
Such  a  conflict  of  views  was  undoubtedly  one  of  the 
main  causes  of  the  continued  conflict  between  Pope  and 
emperor.  Such  questions  as  that  of  investiture,  as  to 
who  should  invest  a  newly  made  prelate  with  the  ring 
and  crozier,  did,  indeed,  involve  questions  of  ephemeral 
and  secondary  import.  But  the  question,  who  should 
be  the  supreme  ruler  in  what  was  apparently  one  and 
the  same  society,  could  only  be  answered  by  a  contest 
and  a  direct  trial  of  strength. 

The  policy  of  the  emperors  tended  greatly  to  secu- 
larize the  Church.  Obviously,  the  great  bulk  of  the 
lay  princes,  uncultured  and  barbarous  as  they  too 
often  were,  were  not  sufficiently  competent  to  carry  on 
the  work  of  administration.  It  was  therefore  the  policy 
of  the  emperors  to  draw  their  ministers  and  governors 
from  the  ranks  of  the  clergy,  to  create  a  school  of  cleri- 
cal statesmen  and  officials,  who  should  help  the  emperor 
to  carry  on  the  task  of  government.  Even  in  other 
countries,  we  behold  very  presentable  types  of  such  men. 
In  England,  for  example,  there  were  the  Archbishops 
Lanfranc  and  Anselm  of  Canterbury;  in  France,  the 
Abbot  Suger;  in  Germany,  such  clerical  statesmen  as 
Bruno,  brother  of  Otto  I,  were  famed  for  efficiency. 
Whether  as  chancellors  or  legates,  they  often  exercised 


184  Medieval  Period 

jurisdiction  in  such  a  way  as  to  enforce  law  and  order, 
and  spread  culture  and  civilization.  But  as  Pope  Pas- 
chal complained  to  Henry  V,  the  bishops  and  abbots 
were  so  occupied  in  secular  causes  that  they  were  very 
often  compelled  to  frequent  the  county  courts  or  engage 
in  military  strife.  And  only  too  often  the  emperor's 
nomination  of  a  bishop  was  decided  by  military  con- 
siderations. 

The  performance  of  civil  and  judicial  functions  must 
have  been  exceedingly  prejudicial  to  the  spirit  of  the 
ministry,  and  they  were  certainly  opposed  to  the  precept 
of  St.  Paul,  Nemo  se  implicet  negotiis  secularibus  (Let 
none  entangle  himself  in  worldly  affairs) .  It  is  no  won- 
der, therefore,  that  Pope  Gregory  VII,  a  single-minded 
man  who  had  at  heart  the  true  interests  of  the  Church, 
perceived  the  need  of  reform,  and,  what  was  more,  de- 
termined to  effect  its  accomplishment. 

To  do  this  successfully  involved  two  things :  first,  the 
active  denial  of  the  jurisdiction  of  the  emperor  to  give 
away  spiritual  benefices;  and,  secondly,  the  liberation  of 
the  Church  in  Germany  from  the  influences  of  feudal- 
ism. Both  of  these  were  drastic  processes  which  were 
sure  to  displease  both  the  emperor  and  a  great  part  of 
the  clergy,  who  would  see  their  interests  threatened  and 
attacked. 

When  Pope  Gregory  VII  proceeded  to  declare  ex- 
communication upon  any  emperor,  king,  duke,  or  count, 
or  any  other  lay  person  presuming  to  give  investiture  of 
any  ecclesiastical  dignity,  Henry  IV  regarded  it  as  a 
personal  challenge.  At  once,  the  question  of  investiture 
brought  into  the  open  the  more  general  issues  at  stake. 
Both  Pope  and  emperor  make  distinct  statements  as  to 
what  they  conceived  to  be  their  powers  of  jurisdiction 
and  coercion. 


Influence  in  Contest  of  Empire  and  Papacy     185 

The  conflict  between  Henry  IV  and  Gregory  VII 
ended  in  the  apparent  defeat  of  Gregory  VII,  who  was 
driven  into  exile.  But  it  was  again  renewed  under 
Henry  V  and  Pope  Paschal  II.  A  compromise  was 
effected  between  the  two,  in  which  the  Pope  obtained 
recognition  of  the  right  of  investiture,  on  condition  of 
the  cession  to  the  emperor  of  all  Church  temporalities, 
excluding,  however,  the  temporalities  of  the  Holy  See. 
Not  until  the  Concordat  of  Worms  (1177)  between 
Henry  V  and  Calixtus  II  was  the  dispute  healed.  And 
even  this  was  only  effected  by  concentrating  the  terms 
of  the  Concordat  to  one  or  two  very  narrow  issues  of  the 
contest.  It  was  stipulated  that  the  Pope  should  invest 
with  the  spiritual  symbols  of  the  office,  and  that  the 
emperor  should  invest  with  the  symbols  of  the  temporal 
jurisdiction  annexed  to  the  office. 

Under  Barbarossa,  the  contest  between  Pope  and 
emperor  came  to  be  fought  on  the  more  general  issues, 
and  with  far  greater  bitterness  than  before.  This  time, 
the  main  center  of  the  struggle  was  in  the  north  of  Italy. 
Barbarossa  gave  the  signal  by  his  attempt  to  enforce 
certain  vexatious  feudal  rights  against  the  Italian  towns. 
These  rebelled,  and  were  helped  and  patronized  in  their 
rebellion  by  Pope  Alexander  III.  The  power  of  the 
towns  was  more  than  a  match  for  that  of  the  emperor 
and  his  feudal  nobles.  At  the  battle  of  Legnano 
(  1 176) ,  Barbarossa  barely  escaped  with  his  life,  and  the 
result  was  the  Treaty  of  Constance,  which  confirmed  the 
towns  in  the  possession  of  practical  independence,  and 
gave  to  the  Pope  a  complete  triumph  over  the  imperial 
party  in  Italy. 

It  was  the  towns  that  had  thus  secured  to  the  Pope 
his  first  great  national  victory  over  the  emperor.  With 
the  natural  strength  of  their  walls  and  extent  of  their 


i86  Medieval  Period 

resources,  they  had  occupied  a  position  in  the  middle  of 
the  see-saw,  and  had  decided  the  balance  against  the 
emperor. 

The  last  phase  of  the  great  struggle  between  empire 
and  Papacy  took  place  under  Frederick  II.  All  over 
Italy  and  Germany  the  strife  between  the  Ghibelline,  or 
imperial  party,  and  the  Guelf,  or  Papal  party,  waxed 
strong.  Brilliant,  indeed,  was  the  career  of  Frederick. 
In  spite  of  the  Pope's  opposition,  he  proceeded  on  the 
Crusade  to  the  Holy  Land  and,  even  while  under  excom- 
munication, achieved  more  substantial  results  than  had 
been  gained  in  any  other  of  the  Crusades.  In  Naples 
and  Sicily,  he  established  a  strong  bureaucracy,  put 
down  the  lawlessness  of  the  barons,  and  established  the 
foundation  of  a  sound  administrative,  judicial,  and 
financial  system. 

In  Germany,  however,  he  was  less  successful.  He 
there  gave  full  liberty,  or  rather  license,  to  the  feudal 
nobility.  Abandoning  what  had  been  the  consistent 
policy  of  previous  emperors,  he  purposely  increased  the 
power  of  the  independent  units,  and  even  forced  his  son, 
Henry  VII,  crowned  king  of  the  Romans,  to  recognize 
by  edict  the  complete  territorial  supremacy  of  the  nobles. 
To  this  measure,  however,  the  towns  in  Germany  were 
strongly  opposed.  The  result  was  a  struggle  between 
the  towns  and  the  feudal  barons,  which  ended  in  the 
extinction  of  neither.  While  the  princes  and  nobles 
retained  independent  jurisdiction  in  their  own  domain, 
the  cities  and  towns  vindicated  their  own  autonomy. 
Thus  Germany  passed  completely  beyond  the  control  of 
any  centralizing  influence.  The  emperor  practically 
abdicated  all  real  authority,  while  Germany  became  a 
mere  aggregate  of  rival  units,  some  under  clerical, 
others  under  lay  jurisdiction. 


Influence  in  Contest  of  Empire  and  Papacy     187 

In  Italy,  Frederick's  success  was  but  temporary.  It 
is  true  that  his  party  was  successful  in  Lombardy,  but 
just  at  this  juncture  he  died,  and  with  him  perished  the 
fortunes  of  the  House  of  Hohenstauffen.  The  life- 
work  of  Frederick  was  practically  a  failure.  The 
powerful  aristocracy  in  Germany  now  divided  amongst 
themselves  the  last  vestiges  of  imperial  power  and 
administration,  while  the  people  in  Northern  Italy 
achieved  their  final  independence.  Even  the  kingdom 
of  Naples  and  Sicily  slipped  from  the  control  of  the 
Hohenstauffen  dynasty,  and  became  ruled  alternately 
by  the  Frenchmen  and  Spaniards. 

Such  was  the  struggle  between  the  empire  and 
Papacy.  The  whole  struggle  reveals  the  all-important 
part  that  was  played  in  it  by  the  economic  elements  of 
feudalism  and  the  towns. 

We  might  summarize  this  aspect  of  the  struggle  by 
remarking  that  it  was  the  feudal  element  in  the  Church 
in  Germany  that  brought  about  the  collision  between  the 
Pope  and  the  emperor.  If  the  prelates  had  been  merely 
spiritual  officers,  there  would  have  been  no  reason  or 
incentive  for  the  emperor  to  claim  the  right  of  investi- 
ture. When,  however,  the  bishop  or  abbot  held  not 
only  a  spiritual  but  also  a  temporal  office;  when,  as 
sometimes  happened,  he  had  under  him  hundreds  of 
knights  and  military  retainers  and  sometimes  even 
powerful  fleets,  then  it  was  all-important  that  the  em- 
peror should  have  a  large  share  in  the  choice  of  the  can- 
didate, and  that,  as  far  as  possible,  he  himself  should 
confer  all  the  symbols  of  jurisdiction. 

Then,  again,  it  was  the  same  powerful  secular  ele- 
ment in  the  Church  in  Germany  that  occasioned  so 
keen  a  struggle  between  Pope  and  emperor  for  the 
mastery  of  the  Church.  German  emperors  regarded  and 


1 88  Medieval  Period 

used  the  Church  not  only  as  an  important  agent  of  ad- 
ministration, but  also  as  an  instrument  for  settling  newly 
obtained  provinces,  and  of  diffusing  German  unity. 
When,  however,  the  Papal  jurisdiction  began  to  assert 
itself,  then  the  Church  in  Germany  was  in  danger  of 
becoming  an  imperium  in  imperio. 

The  feudal  element,  again,  was  the  cause  of  many  of 
the  most  grievous  abuses  in  the  Church  in  Germany. 
But  when  the  Pope  in  the  exercise  of  his  own  lawful 
jurisdiction  attempted  to  bring  about  a  reform  he  was 
resisted  by  the  emperor.  Thus  the  Pope  also  had  reason 
to  complain  of  an  imperium  in  imperio.  The  feudal 
element,  therefore,  had  the  effect  of  causing  both 
Church  and  State  to  infringe  on  each  other's  jurisdiction, 
and  the  result  was  a  long  and  terrible  struggle  for  the 
mastery. 

During  the  course  of  the  struggle  it  is  somewhat  hard 
to  analyze  all  the  subsidiary  causes  and  minor  issues. 
But  one  thing  is  certain,  namely,  that  the  feudal  system 
and  towns  together  effected  the  eventual  overthrow  of 
the  imperial  power,  the  temporary  triumph  of  the 
Papacy,  and  the  establishment  for  a  long  time  of  decen- 
tralized government  both  in  Germany  and  in  Italy. 
The  two  economic  units  of  the  land  and  of  the  town 
succeeded  in  neutralizing  the  unifying  tendency  of  the 
shadowy  Holy  Roman  Empire,  and  in  considerably 
weakening  the  temporal  jurisdiction  even  of  the  Popes. 

But,  even  down  to  the  fourteenth  century,  some  ves- 
tiges could  still  be  seen  of  the  long  conflict  between  the 
centralizing  forces  of  feudalism  and  the  towns.  In 
Dante's  time,  the  fierce  feuds  between  Guelf  and 
Ghibelline  still  continued,  though  the  significance  at- 
tached to  these  party  names  must  have  dwindled  down 
almost  to  the  vanishing  point.  Dante,  in  his  Monarchia, 


Influence  in  Contest  of  Empire  and  Papacy     1 89 

dreams  of  the  world-wide  sovereignty  of  the  Roman 
Empire,  and  believes  that  if  the  emperor  would  only 
once  again  visit  Italy,  and  assert  his  power,  discord 
would  vanish  and  its  place  would  be  taken  by  universal 
peace  and  prosperity. 

To  Henry  VII,  of  the  House  of  Luxemburg,  Dante 
addressed  the  touching  and  well-known  words,  "Come  to 
see  your  Rome,  which  weeps,  widowed  and  alone,  and 
calls  out  day  and  night,  'My  Caesar,  wherefore  does  he 
not  attend  to  me!''  Henry  VII  listened  to  the  re- 
quest. In  1310  he  crossed  the  Alps.  But  his  arrival 
acted  only  as  a  torch  to  the  combustible  material.  When 
the  Ghibellines  granted  him  a  guard  of  honor,  the 
Guelfs  suspected  force  and  treachery  toward  them- 
selves. Many  of  the  Guelfic  cities  like  Florence  shut 
their  gates  against  him,  and  one-half  of  Rome  rose  up 
in  arms  against  one  whom  it  regarded  as  merely  the 
champion  of  the  Ghibelline  party.  Slowly  he  retreated 
northward,  and  only  the  hand  of  death  prevented  him 
from  witnessing  the  utter  failure  of  his  expedition. 

Still  more  humiliating,  and  even  ridiculous,  was  the 
visit  of  Charles  IV,  the  originator  of  the  celebrated 
Golden  Bull,  and  so  successful  in  extending  his  own 
hereditary  dominions.  Not  only  did  he  fail  to  rally 
Italy  around  the  imperial  standard,  but  the  very  person 
of  the  emperor  suffered  the  degradation  of  being  locked 
up  in  the  palace  of  Siena,  and  nearly  dying  from 
hunger. 

The  emperors  ceased  from  attempting  any  longer  to 
make  a  reality  of  the  German  Italian  Empire.  The  old 
factions  of  the  Guelfs  and  Ghibellines  begin  to  die  out, 
and  both  barons  and  towns  live  their  own  individual 
existence  in  an  atmosphere  of  local  quarrels  and 
jealousies. 


CHAPTER  VII 

INFLUENCE     OF     THE     ECONOMIC     ELEMENT     IN 

RAISING     THE      MIDDLE     CLASS     TO     THE 

POSSESSION  OF  POLITICAL  POWER 

DURING  the  early  Middle  Ages,  the  towns  and  the 
industrial  classes  enjoyed  very  little  political  power. 
Living  in  close  subjection  to  their  immediate  lord  they 
found  themselves  entirely  cut  off  from  any  participation 
in  the  administration  of  the  country,  and  were  frequently 
humiliated  by  signs  of  servitude  as  well  as  galled  by 
heavy  money  exactions.  As  yet,  indeed,  there  was  no 
middle  class  forming  a  recognized  part  of  the  social 
machinery,  but  gradually  the  principle  of  association, 
so  dominant  in  the  Middle  Ages,  began  to  assert  itself 
among  the  industrial  classes.  In  the  cities,  in  the  towns, 
and  even  in  the  country,  associations  were  formed  which 
gradually  acquired  a  formal  and  legal  standing,  as  well 
as  a  real  share  of  political  power.  These  associations 
were  the  communes. 

What  was  the  exact  origin  of  the  communes  is  hard 
to  determine.  Some  writers,  building  an  hypothesis  on 
the  analogy  of  such  words  as  civis,  quastores,  forum, 
senatus,  maintain  that  the  commune  is  of  Roman  origin, 
probably  connected  with  the  ancient  collegia,  or  trade 
guilds.  Others,  again,  think  that  the  commune  is  of 
Teutonic  origin.  Both  views,  however,  are  destitute  of 
any  positive  evidence.  The  probable  explanation  is  that 
the  commune  of  the  Middle  Ages  rose  into  existence  by 
the  pressure  of  certain  forces  that  were  more  or  less 
prevailing  throughout  Europe.  Need  of  protection 
from  a  foreign  enemy  or  from  the  tyranny  of  their  own 


Influence  in  Raising  the  Middle  Class         191 

lord,  the  desirability  of  promoting  trade  interests  and 
maintaining  internal  order,  forced  many  of  the  inhabi- 
tants of  the  towns  to  associate  together. 

Such  associations  when  once  formed  speedily  ob- 
tained much  more  than  the  original  purpose  for  which 
they  had  previously  united.  Jurisdiction,  both  of  an 
administrative  and  of  a  judicial  nature,  fell  into  their 
hands;  and  if  the  communes  did  not  at  first  take  an 
active  part  in  the  centralized  system  of  government, 
they  at  least  enjoyed  a  large  share  of  local  self- 
government. 

Perhaps,  if  we  examine  deeply  into  the  general  as- 
pects of  communism,  we  shall  find  that  it  was  but  a  reac- 
tion against  the  personal  rule  of  the  feudalistic  regime. 
Prince  and  bishop  could  no  longer  be  allowed  to  have 
the  monopoly  of  prestige  and  power.  The  many  began 
to  assert  their  claim.  Moreover,  the  writings  of  that 
age  show  clearly  that  the  artisans  in  the  towns  and  the 
peasants  in  the  country  banded  themselves  together,  not 
merely  under  the  lash  of  necessity,  but  also  under  the 
impulse  of  such  high  ideals  as  the  rights  of  man  and  the 
claims  of  universal  brotherhood.  And  it  was  probably 
from  a  recognition  of  this  loftier  element  of  communism 
that  some  of  the  prelates  warmly  espoused  its  cause  and, 
like  the  Bishop  of  Noyon,  even  positively  helped  to  its 
establishment. 

From  the  very  beginning  of  their  formation,  the 
communes  began  to  enjoy  some  of  the  jurisdiction  that 
had  hitherto  been  the  monopoly  of  feudalism.  In  some 
cases,  it  is  true,  they  seem  to  have  so  far  entered  the 
precincts  of  feudalism  as  to  assume  the  position  of  vas- 
sals toward  the  prince  who  gave  them  their  communis- 
tic charter.  For  while,  on  their  part,  they  swore  to  be 
faithful  to  their  lord,  he  took  upon  himself  the  obligation 


192  Medieval  Period 

to  defend  them  as  though  they  were  his  own  men.  The 
communes  exercised  legislative  and  judicial  power  that 
was  confined  only  by  the  limits  of  the  city.  They  could 
also  build  fortifications  and  impose  taxes.  Such  powers 
may  have  varied  greatly  in  the  cities  of  different  coun- 
tries, and  sometimes  even  in  cities  of  the  same  country, 
but,  whether  many  or  few,  these  powers  attest  to  the 
true  nature  of  the  communistic  jurisdiction. 

In  the  Middle  Ages  much  importance  was  attached 
to  symbols.  One  of  the  great  symbols  of  administrative 
and  judicial  power  was  the  seal.  Emperors  and  kings 
possessed  their  own  peculiar  seal,  and  so,  also,  did  the 
Popes,  of  whom  there  were  some  whose  documents  were 
called  "bulls"  from  the  peculiar  holla,  or  seal,  attached 
to  them.  So,  also,  throughout  every  European  country, 
the  communes  had  the  right  of  using  their  own  seal,  the 
seal  of  the  corporation. 

Another  symbol  of  their  power  was  the  building 
where  the  administrative  organ  of  the  commune  met  and 
carried  on  its  deliberations.  Whether  under  the  name 
of  "guild  hall"  in  England,  hotel  de  ville  in  France 
and  Belgium,  or  rathaus  in  Germany,  it  was  always 
an  outward  sign  that  the  commune  had  power  to  per- 
form some  very  important  functions. 

But  one  of  the  most  precious  of  the  outward  signs  of 
their  jurisdiction  and  power  was  the  charter.  Unlike 
the  power  of  the  feudal  baron,  which  was  indefinite  as  to 
time,  place,  and  limit,  the  power  of  the  commune  was 
absolutely  definite  as  to  the  time  of  its  origin,  circum- 
stances of  its  formation,  and  precise  limits  of  its  jurisdic- 
tion. Cases  may  have  occurred  of  the  commune  having 
an  actual  existence  before  the  charter  was  granted,  but 
while  in  that  embryonic  condition  it  had  no  legal  and 
formal  existence. 


Influence  in  Raising  the  Middle  Class         193 

The  clauses  of  these  charters  varied  considerably, 
both  in  quantity  and  quality.  They  generally  touched 
upon  the  following  points :  namely,  the  organization  of 
the  commune,  the  appointment  of  a  certain  definite  place 
where  it  could  meet  and  carry  on  its  functions,  the  defi- 
nition of  the  limits  of  its  administrative  and  judicial 
power,  and,  very  often,  the  enumeration  of  certain 
powers  still  reserved  to  the  feudal  jurisdiction  of  the 
grantor  of  the  charter.  These  are  only  examples  of 
some  of  the  clauses  which  were  found  in  many  of  the 
charters.  It  must  be  remembered  that  scarcely  two 
charters  are  found  identically  alike. 

One  of  the  extracts  from  charters  still  extant  will 
serve  as  an  illustration.  In  the  charter  given  to  the 
city  of  Beauvais,  we  read  the  following : 

"The  peers  of  the  commune  shall  swear  to  favor  no 
one  for  friendship  sake,  to  injure  no  one  on  the  ground 
of  private  enmity ;  they  shall  in  every  case  give,  accord- 
ing to  their  power,  an  equitable  decision.  All  others 
shall  swear  to  obey  the  decisions  of  the  peers,  and  try  to 
assist  in  seeing  that  they  are  carried  out.  Whenever 
any  man  has  done  an  injury  to  a  person  who  has  sworn 
the  commune,  on  a  complaint  of  the  same  being  made, 
the  peers  of  the  commune  shall  punish  the  delinquent 
either  in  his  person  or  in  his  goods,  deliberation  having 
been  held  on  the  subject. 

"If  the  culprit  takes  refuge  in  some  castle,  the  peers 
of  the  commune  shall  refer  to  the  lord  of  the  castle 
or  his  representative,  and  if,  according  to  their  opinion, 
satisfaction  is  done  them  against  the  enemy  of  the  com- 
mune, it  will  be  enough;  but  if  the  lord  refuses  satis- 
faction, they  shall  do  justice  to  themselves  on  the  lord's 
property  or  on  his  retainers.  If  some  foreign  merchant 
comes  to  Beauvais  for  trading  purposes,  and  if  any  one 


194  Medieval  Period 

does  wrong  or  injury  to  him  within  the  municipal  pre- 
cincts, if  a  complaint  is  entered  before  the  peers,  and  if 
the  merchant  can  discover  the  malefactor  in  the  town, 
the  peers  shall  punish  him,  unless  the  merchant  should 
be  an  enemy  of  the  commune.  If  it  happened  that  the 
whole  commune  marched  out  of  town  against  its  ene- 
mies, no  one  shall  hold  parley  with  the  enemies  except 
by  leave  of  its  peers." 

Such  are  the  most  significant  clauses  of  the  charter. 
They  point  to  the  peculiar  circumstances  under  which 
the  charter  was  given,  and  they  indicate  that  the  main 
object  of  the  charter  was  defense  against  wrong-doing 
from  within  or  without.  Protection  from  violence  and 
fraud  seems  to  have  been  the  dominant  feature  of  the 
charter.  On  the  other  hand,  the  clauses  from  the  char- 
ter of  Henry  I  to  the  city  of  London  are  of  quite  a  dif- 
ferent character  and  intent.  Though  not  giving  to  the 
citizens  of  London  the  legal  status  of  a  commune,  they 
distinctly  lay  down  the  framework  of  its  future  exist- 
ence. Its  main  points  are  the  following:  namely,  an 
autonomous  judicial  administration  of  their  own,  free- 
dom from  the  obligation  to  accept  trial  by  battle,  and 
from  the  payment  of  various  imposts,  the  right  to  elect 
their  own  sheriff,  and  to  have  their  own  political  meet- 
ings. Nothing  is  said  about  means  of  self-defense,  and 
the  main  purpose  of  the  charter  appears  to  be  the 
definite  organization  of  municipal  administration,  and 
a  certain  freedom  from  the  control  of  the  central 
administration. 

Evidently  such  charters  were  extremely  valued  and 
kept  with  jealous  care.  Occasionally  they  met  with  mis- 
hap, and  then  the  first  care  of  the  burghers  was  to  get 
them  replaced.  Thus,  for  example,  during  the  Hundred 
Years'  War,  the  charter  of  the  commune  of  Polk  was 


Influence  in  Raising  the  Middle  Class         195 

destroyed,  but  the  townsmen,  after  furnishing  their  lord 
with  written  proofs  of  the  legitimacy  of  their  demand, 
obtained  from  him  the  renewal  of  the  original  charter. 

Besides  the  possession  of  a  charter  and  a  definite 
organization,  the  communes  also  enjoyed  an  organized 
military  force  of  their  own.  In  England  this  was  used 
mainly  for  the  purpose  of  keeping  order  within  the 
limits  of  the  town.  Patrols  of  townsmen  paraded  the 
walls  and  streets  and  stood  on  guard  at  the  gates.  It  is 
true  that  this  police  system  in  England  was  prescribed 
and  regulated  by  royal  ordinance,  but  that  does  not  take 
away  from  the  fact  that  the  town  military  organization 
was  a  function  of  the  commune  as  such. 

Similarly  on  the  Continent,  we  find  that  the  com- 
munes had  also  a  military  organization  of  their  own. 
In  many  cases,  such  organization  formed  a  direct  part  of 
the  defensive  forces  of  the  country,  and  the  inhabitants 
of  the  towns,  like  the  feudal  knight,  might  be  called 
upon  by  the  lord  to  wage  war  against  the  common 
enemy.  This  was  the  case  with  some  of  the  exposed 
towns  in  Germany,  and  it  was  so  in  many  parts  of 
France.  In  these  places  we  find  clauses  in  the  charters, 
stating  in  minute  terms  the  exact  conditions  and  limits 
of  the  military  service  that  had  to  be  given  by  the  towns. 

Besides  having  a  military  organization  of  its  own,  the 
commune  also  possessed  control  over  its  own  finances. 
In  some  cases  these  must  have  been  very  considerable. 
Besides  certain  lands  and  forests  that  were  the  common 
property  of  the  town,  a  considerable  income  was  derived 
from  judicial  fines,  market  tolls,  and  even  the  imposition 
of  local  taxes.  Many  charters  contain  special  mention 
of  these  financial  privileges.  Even  the  privilege  of 
coining  their  own  money  is  sometimes  allowed  to  the 
members  of  the  commune.  In  England,  however,  this 


196  Medieval  Period 

privilege  was  very  much  restricted.  In  France  it  was 
quietly  removed  altogether  by  the  policy  of  the  kings, 
and  only  in  Germany  and  Italy  did  local  coinage  hold  its 
ground  for  a  long  time,  a  fact  which  testifies  to  the 
strong  decentralizing  tendencies  of  those  countries. 

Before  concluding  our  general  description  of  the 
communes,  just  one  word  must  be  said  regarding  their 
methods  of  government.  Naturally,  these  differed  very 
widely  in  different  countries.  Magistrates  and  councils 
seem  to  have  been  the  usual  nominal  governing  body. 
Then,  as  the  guilds  and  crafts  gradually  became  more 
and  more  important,  they  managed  to  usurp,  in  many 
cases,  the  entire  municipal  control.  For  a  long  time 
there  was  a  fierce  and  widespread  contest  between  the 
members  of  the  upper  and  lower  guilds  for  the  posses- 
sion of  the  municipal  authority.  The  lower  guilds  were, 
in  the  main,  successful,  and  the  basis  of  the  government 
of  the  town  grew  more  and  more  democratic.  In  Italy, 
however,  each  of  the  important  towns  had  a  special, 
typical  form  of  government  of  its  own,  incapable  of 
being  included  in  any  ordinary  classified  group.  Thus, 
Venice  furnishes  us  with  an  oligarchic  type  of  govern- 
ment, Florence  with  a  despotic.  Rome,  on  the  other 
hand,  has  the  unique  privilege  of  possessing  a  theocratic 
form  of  government,  while  Naples  continued  for  many 
years  the  feudal  system,  which  in  other  parts  of  Italy 
had  long  become  obsolete. 

We  must  now  consider  in  detail  the  different  coun- 
tries of  Europe,  for  the  purpose  of  discovering  how  far, 
in  each  of  them,  the  towns  became  the  instruments  for 
placing  a  large  share  of  political  power  in  the  hands  of 
the  middle  class.  We  shall  thus  see  more  clearly  how 
the  economic  element  of  the  town  became  the  lever  by 
which  political  power  became  transferred  from  the 


Influence  in  Raising  the  Middle  Class         197 

hands  of  feudal  magnates  into  the  hands  of  the 
people. 

In  France,  the  relations  between  the  towns  and  the 
monarchy  were  of  a  varied  nature.  Sometimes,  the 
kings  favored  the  communes,  and  made  use  of 
them  for  extending  the  royal  power;  at  other  times, 
they  acted  toward  the  communes  with  the  greatest 
hostility. 

On  the  king's  own  personal  domain,  the  communes 
were  generally  discouraged.  Nor  was  this  a  matter  of 
wonder.  The  autonomous  jurisdiction  of  the  communes 
meant  a  corresponding  deprivation  of  royal  power. 
When,  therefore,  such  towns  as  Orleans,  Poitiers,  and 
Paris  tried  to  form  themselves  into  communes,  they  were 
prevented  from  doing  so  by  main  force. 

When,  however,  it  was  a  question  of  establishing 
communes  on  the  domain  of  other  feudal  lords,  then  the 
royal  policy  was  generally  in  their  favor.  For  the  com- 
munes, by  being  placed  under  royal  protection,  became 
so  many  expansive  nuclei  of  royal  influence,  and,  at  the 
same  time,  tended  to  diminish  the  formidable  power  of 
the  great  feudatories.  It  was,  however,  on  the  domains 
of  the  great  bishops  and  abbots  that  such  communes 
were  first  established,  and  only  by  slow  degrees  did  the 
movement  also  spread  to  the  domains  of  the  feudal 
lords.  At  first,  the  kings  only  confirmed  the  charters 
that  had  been  given  by  the  immediate  lord.  Such  a  con- 
firmation, at  first  quite  voluntary,  became  changed  by 
custom  into  a  necessity,  until  eventually  no  charter  was 
considered  valid  without  the  royal  signature.  In  fact, 
by  the  middle  of  the  fourteenth  century,  it  was  definitely 
proclaimed  by  the  king  that  to  him  alone  belonged  the 
right  to  establish  the  commune. 

Under  Philip  Augustus  and  Louis  XIII,  the  com- 


198  Medieval  Period 

munes  became  the  most  powerful  agents  of  the  royal 
power.  They  not  only  diminished  the  formidable  power 
of  the  great  feudatories,  but  were  most  useful  instru- 
ments in  the  centralized  system  of  government.  In 
certain  parts  of  the  kingdom  that  were  exposed  to  hos- 
tile invasion,  they  fulfilled  the  same  purpose  as  the 
walled  towns  built  by  Henry  the  Fowler.  They  served 
as  fortresses  against  the  enemy. 

From  the  financial  point  of  view,  the  communes  were 
extremely  useful  to  the  king.  It  was  mainly  the  desire 
of  getting  more  money  from  them  that  induced  the 
kings  of  England  and  France  to  allow  the  communes 
to  send  representatives  to  the  great  national  assembly, 
and  it  was  thus,  through  these,  that  the  great  wealth 
accumulated  by  the  middle  classes  was  diverted  to  the 
needs  of  the  treasury  of  the  nation. 

By  degrees,  however,  the  power  of  the  communes  began 
to  menace  the  interests  of  the  Crown.  After  the  time 
of  Philip  Augustus,  we  find  the  royal  authority  coming 
into  frequent  collision  with  the  communes.  Sometimes 
there  was  open  violence,  but  usually  the  kings  tried  to 
obtain  their  end  by  more  pacific  means.  They  began  to 
assume  to  themselves  the  prerogative  of  choosing  the 
magistrates,  and  availing  themselves  of  the  plea  of  finan- 
cial mismanagement,  they  placed  the  administration  of 
the  funds  under  royal  control. 

It  was  not  long  before  the  communes  began  to  lose 
their  independent  existence.  In  spite  of  the  revolution- 
ary movement  of  1382,  when  the  important  cities  of 
Paris,  Rouen,  and  Orleans  flew  to  arms  and  resisted  the 
aggressions  of  the  French  king,  they  were  gradually 
brought  into  submission.  After  all,  the  communes  were 
only  one  section  of  the  community.  Against  them  were 
the  king  and  the  barons,  and,  more  powerful  still,  the 


Influence  in  Raising  the  Middle  Class         199 

wonderful  administrative  systems  that  enveloped,  like  a 
network,  the  whole  kingdom. 

The  communes,  in  spite  of  their  temporary  extinction, 
had  done  an  important  and  lasting  work.  When  the 
French  king  allowed  them  to  send  representatives  to  the 
national  council,  he  little  dreamed  that  he  was  putting 
into  the  hands  of  the  middle  class  what  would  become, 
in  the  future,  a  most  formidable  power.  It  is  true  that 
with  the  growth  of  the  French  monarchy  the  Third 
Estate  was  rarely  assembled,  and  that  between  the  year 
1616  and  the  beginning  of  the  French  Revolution  it 
met  only  once.  Yet  the  power  of  the  people  had  a  legal 
instrument  with  which  to  act  on  the  destinies  of  the 
nation.  And  when,  in  the  year  1789,  the  Third  Estate 
met  together  and  gradually  took  over  all  the  political 
power,  it  was  only  continuing  the  work  that  was 
done  by  the  early  communes — a  work  that  was  inter- 
rupted by  centuries  of  royal  despotism. 

In  Germany,  the  towns,  by  means  of  the  communes, 
also  became,  in  great  measure,  the  instrument  by  which 
the  middle  class  asserted  its  weight  and  influence. 

At  first,  the  towns  in  Germany  had  very  little  govern- 
ment of  their  own.  Most  of  them  were  placed  under  the 
control  of  counts.  By  degrees,  many  of  these  cities 
became  released  from  this  subjection.  The  tyranny  and 
rapacity  of  the  overlords  were  so  intolerable,  and  the 
injury  done  to  the  interests  of  trade  and  commerce  was 
so  great,  that  the  emperors  interfered  and,  as  in  France, 
began  to  take  the  market  towns  under  their  protection. 
Thus,  none  were  permitted  to  interfere  with  the  markets 
of  such  towns;  their  functions  were  protected  from  all  in- 
terference and  hindrance,  and  all  unjust  charges  were 
sternly  prohibited.  Jurisdiction  over  offenses  committed 
during  the  market  was  also  frequently  removed  from 


SOD  Medieval  Period 

the  hands  of  the  local  courts  and  referred  to  the  judge 
of  the  province. 

Their  military  strength  became  almost  of  as  much 
benefit  to  the  emperor  as  his  protection  was  to  them. 
Their  forces  became  part  of  the  military  strength  of  the 
empire,  and  were  often  more  to  be  depended  upon  than 
those  of  the  feudal  barons.  Naturally,  the  alliance  be- 
tween the  emperor  and  the  cities  that  was  thus  based  on 
mutual  interests  was  bound  to  increase.  Cities  frequently 
rebelled  against  their  overlord,  and  placed  themselves 
under  the  protection  of  the  emperor.  Sometimes,  as  in 
the  case  of  the  city  of  Speyer  in  1707,  they  would  even 
shake  off  the  jurisdiction  of  a  spiritual  overlord. 

Such  cities  occupied  the  feudal  position  of  a  vassal- 
in-chief,  and  thus  enjoyed  a  distinct  right  to  send  repre- 
sentatives to  the  Imperial  Diet,  where,  together  with  the 
elector  and  princes,  they  took  part  in  the  gravest  affairs 
of  State.  Thus,  in  1338,  a  summons  was  sent  to  the 
imperial  city  of  Liibeck,  and  the  wording  of  it  was,  that 
it  should  send  two  representatives  to  Frankfort  in  order 
to  confer  with  the  princes,  courts,  and  other  cities. 

Together  with  this  political  power  which  they  enjoyed 
by  sharing  in  the  deliberations  of  the  Diet,  the  German 
towns  were  able  to  exercise  political  power  in  another 
and  very  unique  way.  The  leagues  of  the  towns  which 
we  have  already  mentioned  gave  to  the  middle  class 
some  of  the  rights  and  prerogatives  of  sovereign  powers. 
Not  only  did  they  declare  war  and  make  treaties,  but 
they  formulated  a  code  of  maritime  laws  and  made 
themselves  responsible  for  the  general  preservation  of 
order.  The  following  passage,  taken  from  the  Agree- 
ment of  the  Rhine  League,  will  show  how  the  middle 
class  asserted  for  themselves  an  equality  of  power  and 
of  rights  with  the  princes  of  the  empire : 


Influence  In  Raising  the  Middle  Class         201 

"We,  the  judges,  consuls  (aldermen),  and  all  the 
citizens  of  Mainz,  Cologne,  Worms,  Speyer,  Strass- 
burg,  Basel,  and  other  cities  which  are  bound  together 
in  the  league  of  the  holy  peace.  We  have  mutually 
bound  ourselves  by  oath  to  observe  a  general  peace  for 
ten  years  from  St.  Margaret's  day.  The  venerable 
archbishops,  Gerhard  of  Mainz,  Conrad  of  Cologne, 
Arnold  of  Trier,  and  the  bishops,  Richard  of  Worms, 
Henry  of  Strassburg,  Jacob  of  Metz,  Berthold  of  Basel, 
and  many  counts  and  nobles  of  this  land  have  joined  us 
in  this  oath,  and  they,  as  well  as  we,  have  all  surrendered 
the  unjust  tolls  which  we  have  been  collecting,  both  by 
land  and  water  .  .  .  not  only  the  greater  areas  among 
us  shall  have  the  advantage  of  the  common  protection." 

In  another  document,  issued  by  the  Rhine  League,  we 
read: 

"If  any  knight,  in  trying  to  aid  his  lord,  who  is  at 
war  with  us,  attacks  us  or  molests  us  anywhere  outside 
of  the  walled  towns  of  his  lord,  he  is  breaking  the  peace 
and  we  will  inflict  due  punishment  on  him  and  his  pos- 
sessions. We  wish  to  be  protectors  of  the  peasants,  and 
we  will  protect  them  against  all  violence  if  they  will 
observe  the  peace  with  us." 

Such  clauses  clearly  show  that  the  middle  class  in 
Germany  enjoyed,  by  means  of  the  towns,  an  almost 
separate  imperium,  or  political  jurisdiction.  It  is  no 
wonder  that  Frederick  II  did  all  in  his  power  to  encour- 
age the  feudal  element  at  the  expense  of  the  towns. 
The  fruitlessness  of  his  efforts  testifies  to  their  strength. 
When  single  towns,  like  Cologne,  were  able  to  put  into 
the  field  an  armed  force  of  thirty  thousand  men,  it  is 
evident  that  in  their  collective  capacity  they  could  not 
do  otherwise  than  shake  off  the  yoke  of  the  feudal  mag- 
nates. Even  to  this  day  the  fact  that  the  tKree  towns 


2O2  Medieval  Period 

of  Hamburg,  Bremen,  and  Liibeck  entered  the  German 
Imperial  Confederation  as  separate  States  amply  sets 
forth  the  sovereignty  of  the  middle  class  in  later  me- 
dieval Germany. 

When  we  come  to  the  towns  in  Italy,  we  find  a 
remarkably  rapid  development  of  the  middle  class. 
Already,  by  the  ninth  century,  there  began  to  appear 
independent  communes.  This  is  mainly  accounted  for 
by  the  fact  that  the  towns,  in  the  earliest  phase  of  their 
existence,  were  under  the  jurisdiction  of  the  bishops.  It 
was,  therefore,  much  easier  for  the  townsmen  to  assert 
their  independence  than  if  they  had  to  struggle  against 
some  powerful  and  unscrupulous  lay  ruler.  Moreover, 
the  people  themselves  took  part  in  the  election  of  their 
bishop,  and  this  share,  however  nominal,  in  the  making 
of  their  own  government,  was  already  one  step  forward 
in  the  direction  of  democratic  government. 

In  the  twelfth  century  we  behold  throughout  Italy  a 
glorious  constellation  of  happy  and  thriving  republic 
towns:  Amalfi,  with  its  fifty  thousand  inhabitants,  trad- 
ing with  the  farthest  regions  of  the  East;  Salerno,  with 
its  medical  school,  its  gorgeous  palaces  and  enchanting 
gardens;  Pisa,  with  ten  thousand  towers  within  its  city 
walls,  and  already  by  1114  enjoying  full  self-govern- 
ment; Genoa,  with  its  spacious  harbor,  green-clad  hills, 
and  trading  settlements  all  over  the  Mediterranean; 
while,  above  all,  towering  in  natural  strength  and  mer- 
cantile splendor,  was  Venice  with  its  seven  fleets,  its 
supremacy  in  trade  and  commerce,  and  in  full  enjoy- 
ment of  its  republican  constitution.  Similarly,  the  Lom- 
bard towns,  at  the  same  time  that  they  grew  commer- 
cially, developed  constitutions  that  were  essentially 
democratic. 

The  conflict  between  Frederick  Barbarossa  and  the 


Influence  in  Raising  the  Middle  Class         203 

towns  only  hastened  the  commercial  movement.  His 
arrogant  claim  to  feudal  rights  and  personal  jurisdiction 
over  the  towns  only  welded  together  still  more  strongly 
the  democratic  forces.  One  conspicuous  feature  about 
this  movement  was  that  even  many  of  the  aristocracy 
shared  in  it,  and  thus  contributed  their  aid  to  the  over- 
throw of  the  feudal  system  of  government. 

Unfortunately,  the  relaxation  of  imperial  aggressive- 
ness became  the  accidental  cause  of  disunion,  both 
among  the  cities  and  even  inside  the  cities  themselves. 
The  nobles  and  the  merchant  classes  strove  to  monop- 
olize government  to  the  exclusion  of  the  lower  classes. 
In  other  words,  the  towns  remained  infected  by  the  bad 
feudal  element  of  clique  and  class.  Bitterness  and  strife 
resulted,  and  things  were  made  worse  by  the  angry 
quarrels  between  the  Papal  and  imperial  party,  which 
penetrated  into  almost  every  town  of  Italy. 

Instead  of  democratic  institutions,  anarchy  and  con- 
fusion reigned  supreme,  until  gradually  there  crystal- 
lized into  shape  almost  every  conceivable  form  of  gov- 
ernment. In  Milan,  for  example,  the  Sforzas,  military 
adventurers,  seized  the  occasion  to  establish  a  despotism 
whose  odious  character  was  mitigated,  however,  by  the 
paternal  and  beneficial  character  of  their  personal  rule. 
In  Florence,  we  behold  likewise  a  despotism  ingrafting 
itself  upon  what  was  nominally  a  republic;  in  Venice, 
the  republic  gradually  transforms  itself  into  an  oligarchy 
of  the  most  powerful  kind  that  the  world  has  ever  seen. 

The  reign  of  the  middle  class  in  Italy  was,  therefore, 
short-lived.  Owing  to  bad  conditions,  the  democracy 
only  prepared  the  way  for  other  and  various  forms  of 
government.  But  if  these  abnormal  conditions  had  not 
been  present,  the  people  would  have  enjoyed  as  much 
political  power  as  they  did  in  other  countries. 


204  Medieval  Period 

We  now  come  to  England,  in  which  the  towns,  more 
than  elsewhere,  prepared  the  way  for  placing  the  pre- 
ponderance of  power  in  the  hands  of  the  middle  class. 

Even  from  Anglo-Saxon  times,  the  towns  had  sent 
representatives  to  the  shire  court,  and  had  thus  taken 
part  in  the  government  of  a  larger  area  than  their  own. 
In  1265,  Simon  de  Montfort  gave  to  the  towns  even 
wider  activity,  and  empowered  them  to  send  representa- 
tives to  Parliament.  Although,  at  first,  the  representa- 
tion was  not  regular  or  complete,  yet,  by  the  Parliament 
of  1295,  it  had  become  so,  and  the  Third  Estate  took 
part  in  the  deliberations  of  Parliament,  as  permanent 
and  essential  members.  It  is  true  that  for  some  consid- 
erable time  their  influence  was  in  the  background.  They 
were  timid  and  were  inexperienced.  But  the  advance  of 
time  overcame  both  these  obstacles.  Moreover,  the  im- 
portant fact,  that  the  knights  of  the  shire  sat  side  by  side 
with  citizens  and  burgesses  in  the  town-house,  gave  to 
the  Third  Estate  a  power  and  a  prestige  that  it  could 
not  enjoy  in  the  assemblies  on  the  Continent. 

By  the  time  of  Richard  III,  in  the  fourteenth  century, 
we  find  that  preponderance  of  power  already  lodged  in 
the  hands  of  the  representatives  of  the  Third  Estate. 
For  they  had  by  then  acquired  the  all-important  control 
of  the  purse.  All  money  bills  had  to  originate  in  the 
house  of  the  representatives  of  the  middle  class;  they, 
alone,  could  appropriate  sums  of  money,  and  could  ex- 
amine into  the  financial  accounts.  They  alone  had  the 
right  of  impeachment,  and  used  that  right  for  the  pur- 
pose of  getting  rid  of  powerful  and  obnoxious  ministers. 
And  they  also  took  an  active  part  in  matters  dealing 
with  domestic  and  foreign  policy. 

At  first,  the  middle  class  took  the  side  of  the  king 
against  the  all-powerful  barons,  but  as  the  king's  power 


Influence  in  Raising  the  Middle  Class         205 

became  stronger  and  more  centralized,  their  interests 
became  affected  in  another  way,  and  their  policy  under- 
went a  corresponding  change.  By  the  time  of  the  Tudor 
kings  there  had  crystallized  into  definite  shape  that  tre- 
mendous struggle  between  the  monarchy  and  the  repre- 
sentatives of  the  middle  class  that  culminated  in  the 
civil  war  between  Charles  I  and  his  Parliament,  the 
execution  of  the  king,  and  the  revolution  of  1688,  when 
James  II  was  driven  from  the  throne,  and  William  III 
of  Orange  was  called  over  from  Holland  to  take  his 
place. 

The  main  part  in  this  contest  was  taken  by  the  repre- 
sentatives of  the  middle  class  sitting  in  the  House  of 
Commons.  Using  their  power  of  the  purse,  it  was 
they  who  dared  to  question  the  will  even  of  Henry  VIII 
and  Elizabeth,  and  continually  brought  their  remon- 
strances to  the  notice  of  James  I.  It  was  the  Commons 
again  who,  by  silent  and  patient  waiting,  brought  about 
the  psychological  moment  when  Charles  I  was  forced 
to  summon  the  representatives  to  ask  them  for  supplies 
to  carry  on  the  Scotch  war,  and  it  was  they  again  who, 
goaded  into  desperation  by  the  violation  of  their  rights 
and  privileges,  summoned  around  them  the  armed  force 
of  the  greater  part  of  the  nation,  beat  the  king  into  sub- 
mission, and  took  him  prisoner.  When,  on  the  I9th  of 
January,  1649,  tne  king's  head  rolled  on  the  block,  we 
behold  the  apotheosis  of  the  power  of  the  people  and 
the  downfall  of  its  rival,  the  power  of  the  Crown. 

Even  the  reaction,  which  followed  in  the  restoration 
of  Charles  II,  did  not  end  the  onward  march  of  the 
middle  class.  Under  James  II,  they  asserted  law-mak- 
ing powers  of  the  Parliament,  and  when,  in  defiance  of 
their  opposition,  he  still  insisted  on  his  royal  prerogative 
of  dispensing  with  the  laws  which  they  had  made  and 


206  Medieval  Period 

promulgated,  then  they  rose  up  a  second  time  and  invited 
William  III  to  take  the  throne  and  govern  conjointly 
with  them,  as  a  limited  constitutional  monarch. 

From  henceforth,  there  was  only  one  obstacle  to  the 
political  power  of  the  people,  and  that  was  the  limita- 
tion of  the  franchise.  Only  persons  of  considerable 
property  enjoyed  the  right  of  voting.  Small  and  de- 
cayed towns  still  sent  up  representatives,  while  large  and 
growing  towns  were  still  deprived  of  all  representation, 
and  there  were  even  rotten  boroughs,  merely  nominal 
boroughs,  who  sent  up  representatives  that  were  not  the 
people's  representatives,  but  only  the  paid  hirelings  of 
some  aristocratic  or  wealthy  individual.  By  this  means, 
the  middle  class  were  practically  shut  out  from  their  real 
share  of  political  power;  only  in  some  wave  of  popular 
agitation  could  their  voice  make  itself  heard. 

All  this,  however,  was  remedied  by  the  Reform  Bill 
of  1832.  Rotten  boroughs  were  swept  away,  the  fran- 
chise widened,  and  the  big  towns  allowed  their  proper 
share  of  representation.  From  henceforth,  the  towns 
resumed  their  old  functions  as  the  levers  by  which  the 
middle  class  controls  the  destinies  of  the  nation.  Even 
at  the  present  day,  at  a  general  election,  the  returns 
from  the  large  towns  are  a  subject  of  vital  interest,  be- 
cause the  will  of  the  nation  makes  itself  known  through 
candidates  of  the  large  towns. 

If  we  glance  at  the  condition  of  things  on  the  other 
side  of  the  Atlantic,  we  shall  find  ourselves  face  to  face 
with  the  same  facts.  The  American  is  derived  mainly 
from  the  English  constitution.  In  nearly  all  the  Ameri- 
can colonies,  there  was  a  Popular  Assembly,  consisting 
of  representatives  from  the  towns  or  boroughs.  And 
the  power  of  such  assemblies  was  the  imitation,  and 
counterpart,  and  continuation  of  the  very  same  power 


Influence  in  Raising  the  Middle  Class         207 

that  was  enjoyed  by  the  English  House  of  Commons. 
Control  of  the  purse,  exclusive  right  to  initiate  money 
bills,  power  to  legislate,  were  privileges  that  were 
claimed  and  exercised  by  the  colonial  Popular  Assem- 
blies. The  governor  might,  indeed,  refuse  his  consent, 
and  no  bill  in  that  case  could  become  law,  but  the  Assem- 
bly had  the  power  to  deprive  the  governor  of  his  salary, 
and  thus  the  governor,  like  the  English  king,  was  com- 
pelled to  comply  with  the  popular  wish  under  pain  of 
financial  embarrassments. 

When,  later  on,  the  American  nation  became  an  ac- 
complished fact,  its  constitution  was  modeled  upon  the 
best  and  most  democratic  elements  in  the  English  con- 
stitution. Altered  circumstances  rendered  necessary  a 
corresponding  alteration  in  the  method  of  representa- 
tion. It  is  the  States  and  congressional  districts  that 
send  representatives  to  the  Houses  of  Congress,  while 
in  the  separate  States  it  is  the  county  that,  singly  or  col- 
lectively, forms  the  nominal  unit  of  representation.  But 
no  one  doubts  that,  even  to  this  day,  the  big  towns  and 
cities  are  the  real  centers  of  the  political  life  and  activity 
of  the  country.  It  is  there  that  the  conventions, 
caucuses,  and  political  committees  exercise  their  sover- 
eignty; and  the  more  important  the  city,  so  much  the 
more  weight  is  attached  to  its  political  verdict. 

The  town,  therefore,  even  in  our  modern  times,  still 
remains  the  fulcrum  through  which,  and  in  which,  the 
great  middle  class  choose  their  real  rulers,  and  shape  the 
destinies  of  nations.  And  this  important  function 
began,  as  we  have  shown,  during  the  turbulent  times  of 
the  Middle  Ages.  Then  was  laid  the  foundation  of  the 
democratic  structure  of  to-day.  The  struggles  between 
the  communes  and  the  royal  power  in  England  and  on 
the  Continent,  their  gradual  emancipation  from  outside 


208  Medieval  Period 

control,  and  development  of  local  autonomy  were  all 
steps  in  this  important  process.  Still  more  eventful  was 
the  time  when  the  Third  Estate  came  into  control  of  the 
purse.  For  it  was  by  this  means  that  the  Third  Estate 
was  able  to  handle  that  which  is  now  far  more  powerful 
than  the  sword  was  in  the  Middle  Ages,  namely,  the 
power  of  money.  The  victory  of  the  early  commune 
spelled  the  rule  of  the  middle  class  throughout  the  world 
of  the  twentieth  century. 


PART  III 
MODERN    PERIOD 


INTRODUCTION 

THE  Modern  Period  is  often  said  to  begin  about  the 
sixteenth  century,  just  at  the  time  of  the  fall  of  Con- 
stantinople. Although  it  is  impossible  to  divide  history 
into  absolutely  watertight  compartments,  rigidly  divided 
from  one  another,  yet,  roughly  speaking,  there  are  cer- 
tain times  when  the  human  race  seems  to  make  a  distinct 
step  forward.  New  ideals  come  to  the  foreground,  new 
subjects  of  interest  are  cultivated,  and  the  whole  mental 
horizon  becomes  widened  and  enlarged. 

Such  was  the  case  in  the  sixteenth  century.  The  relig- 
ious reformation,  the  revival  of  the  classics,  the  rise  of 
diplomacy — these  mark,  all  over  Europe,  an  entirely 
new  condition  of  intellectual  activity. 

The  political  condition  of  Europe  was  also  under- 
going important  alterations.  Empire  and  Papacy  were 
ceasing  to  be  dominant  factors  in  politics.  Strong  mon- 
archical nations  were  rising  up  with  national  character- 
istics, aspirations,  and  ambitions.  While,  in  previous 
times,  Europe  had  been  divided  vertically  into  the  class 
distinction  of  noble,  burgher,  and  peasant,  it  was  now 
divided  by  horizontal  lines  of  division.  Each  nation 
was  now  beginning  to  have  a  separate  characteristic 
activity  of  its  own,  endowed  with  all  the  more  dramatic 
intensity  on  account  of  the  greater  narrowness  of  space. 

Diplomacy  had  also  become  a  new  factor  in  politics. 
Ambassadors  could  be  found  in  nearly  all  the  important 
countries  of  Europe,  and  alliances  and  treaties  occupied 
a  larger  share  of  attention.  Also,  diplomatic  correspond- 
ence and  interviews  now  counted  for  much  among  the 
political  forces  of  Europe.  Venice  was  the  first,  and, 
for  a  long  time,  the  main  center  of  all  this  activity.  Her 


212  Introduction 

ambassadors  could  be  found  in  every  court,  and  their 
despatches,  still  preserved  in  the  archives,  show  the  mi- 
nuteness of  their  observation,  their  agility  in  acquiring 
information,  and  their  sagacious  acquaintance  with 
human  nature. 

But  the  activity  which  more  than  ever  begins  to  domi- 
nate Europe  is  the  economic  activity.  It  is  this  which 
makes  friends  and  enemies  of  nations.  If  wars  break 
out,  their  fundamental  origin  is  some  rivalry  in  trade  or 
commerce  that  causes  the  dispute.  Alliances  between 
nations  are  determined  by  economic  considerations,  and 
details  regarding  the  state  of  the  market,  and  the 
amount  of  bullion,  occupy  the  minds  of  the  greatest 
statesmen.  Still  more  influential  becomes  the  power  of 
money,  which  exalts  and  depresses  nations,  and  which 
becomes  now  the  real  test  of  a  nation's  power,  according 
to  the  words  of  Louis  XIV,  "It  is  the  last  louis  d'or 
that  wins." 

But  the  economic  activity  of  the  Modern  Period  of  his- 
tory is  intensely  complicated  and  varied.  It  has  a  great 
number  of  different  ramifications,  and  at  least  the  chief 
of  these  must  be  considered  in  order  that  we  may  obtain 
some  idea  of  the  economic  position  of  Europe  in  modern 
times.  They  may  be  classified  as  follows :  ( i )  economic 
theories,  (2)  geographical  discoveries  and  their  immedi- 
ate results,  (3)  altered  methods  in  the  production  of 
wealth,  (4)  distribution  of  wealth,  (5)  relations  be- 
tween governments,  and  also  the  various  ways  in  which 
government  acts  on  the  industrial  life  of  nations. 


CHAPTER  I 

ECONOMIC   THEORIES    DURING   THE   MODERN 
PERIOD  OF  HISTORY 

DURING  the  Modern  Period  of  history,  there  grad- 
ually grew  up  a  formidable  collection  of  views  regarding 
economic  subjects.  These  views  were  not  advanced  in  a 
loose  and  spasmodic  order,  as  had  been  the  case  in 
ancient  times.  So  closely  connected  were  they,  and  so 
coordinated,  that  they  began  to  form  a  complete  system 
of  economic  doctrine.  Thus,  there  appears  for  the  first 
time  the  science  of  economics. 

This  science,  however,  had  its  beginnings  quite  early 
in  the  Middle  Ages.  In  fact,  the  main  lines  of  economic 
thought  can,  many  of  them,  be  traced  back  to  the  writ- 
ings of  the  Schoolmen.  Considerable  advantage  will, 
therefore,  be  gained  if  we  consider,  first,  all  of  the  eco- 
nomic theories  broached  during  the  Middle  Ages. 

Aristotle's  views  were  at  first  the  source  of  much  of 
the  early  medieval  opinion  on  economic  subjects.  This 
was  especially  so  with  regard  to  trade,  the  employment 
of  money,  and  the  exaction  of  interest.  St.  Thomas 
Aquinas  held  that  trade  was  lawful,  but  only  in  strict 
moderation,  only  in  so  far  as  it  contributed  to  the  sup- 
port of  oneself  and  family  and  the  general  well-being  of 
the  commonwealth.  Other  writers  adopted  the  same 
view.  Where  they  seem  to  differ  is  in  naming  the  pre- 
cise limits  that  constitute  the  lawfulness  of  trade. 
When,  for  example,  labor  had  been  expended  in  order 
to  improve  the  quality  of  goods,  some  held  that  it  was 
lawful  to  sell  the  goods  at  a  higher  price  than  when  they 
were  originally  purchased. 


214  Modern  Period 

Medieval  writers  also  entertained  views  regarding 
such  things  as  capital  and  partnership.  Capital  was  de- 
fined by  St.  Bernardino  as  money  considered  as  an  agent 
of  producing  gain.  Such  a  definition,  though  too  par- 
tial, certainly  expressed  a  portion  of  the  truth.  If  he 
had  defined  capital  as  a  good,  considered  as  an  agent  of 
procuring  some  form  of  gain,  then  the  definition  would 
have  coincided  with  the  view  still  held  by  most  modern 
economists.  Partnership,  again,  was  the  subject  of 
much  discussion  and  legislation.  The  earliest  form  of 
partnership  was  that  called  the  commenda.  The  com- 
menda  was  an  arrangement  between  a  certain  party  who 
engaged  in  some  business  enterprise,  and  contributed 
the  necessary  capital,  and  some  other  party  who  acted 
as  an  agent  or  helper,  and  received,  not  only  wages,  but 
also  a  share  of  the  profits.  The  person  who  contributed 
the  capital  was  called  commendatory  and  the  agent  was 
called  commendatarius.  Often,  however,  the  com- 
mendatarius  would  himself  contribute  a  share  of  the 
capital,  and  would  thus  originate  something  very  closely 
resembling  our  modern  partnership. 

In  Germany,  there  was  another  kind  of  partnership 
which  was  still  more  interesting,  as  being  the  parent  of 
ourmodernpartnership.  Thiswasabusinesssociety, either 
between  members  of  the  same  family  still  continuing  to 
live  together,  or  between  members  of  the  same  craft. 

With  regard  to  these  different  forms  of  partnership, 
questions  were  frequently  raised  as  to  the  lawfulness  of 
gain  that  might  be  derived.  According  to  St.  Thomas 
Aquinas,  such  gain  was  lawful  only  on  condition  that  the 
investor  actually  shared  in  the  risk  of  the  enterprise. 

What,  however,  raised  most  discussion  during  the 
Middle  Ages  was  the  question  of  interest  on  money. 
Following  the  lead  of  Aristotle,  many  writers  of  that 


Economic  Theories  of  the  Modern  Period    215 

time  condemned  interest  as  absolutely  unlawful.  At  a 
very  early  period  even,  the  practice  on  this  point  was 
very  severe.  Not  only  were  the  clergy  themselves  pro- 
hibited to  lend  money  at  interest,  but  the  civil  legislation 
also  endeavored  to  stop  the  practice  of  lending  at  inter- 
est. Such  severity  was  occasioned  by  not  seeing  clearly 
the  distinction  between  the  exchange  value  of  a  thing 
and  its  value  in  use,  and  that  money  has  a  peculiar  pro- 
ducing power  of  its  own,  which  should  be  taken  into 
account. 

Also,  they  did  not  see  clearly  the  distinction  between 
the  jus  in  re  and  the  jus  ad  rem.  They  imagined  that 
the  money  of  the  lender  had  passed  altogether  out  of  his 
possession,  and  that,  therefore,  he  was  not  entitled  to 
any  compensation  for  its  use. 

By  degrees,  however,  the  writers  of  that  time  came  to 
moderate  their  opinions  and  to  make  the  practice  easier 
by  the  introduction  of  many  distinctions  and  exceptions. 
While  still  maintaining  that  it  was  wrong  to  demand 
interest  for  the  loan  of  the  money  itself,  they  held  that 
there  might  be  claims  to  compensation  on  other  grounds. 
When  the  lender  parted  with  his  money,  even  for  a  time, 
he  was  deprived  of  the  opportunity  of  using  it  as  capital; 
in  other  words,  the  gain  from  its  use  began  to  cease. 
Such  a  loss  was  termed  lucrum  cessans  and  justified  a 
demand  for  compensation.  Sometimes  the  creditor  was 
subjected  to  a  positive  loss  on  account  of  the  loan.  This 
loss,  also,  received  a  technical  name,  damnum  emergens, 
and  might  constitute  another  claim  to  compensation. 
Finally,  there  was  a  danger,  more  or  less  remote,  of  los- 
ing the  money  that  had  been  lent,  and  this  danger,  called 
periculum  sortis,  became  the  immediate  cause  of  the  jus- 
tification of  the  practice  of  interest. 

Oftentimes,  the  debtor  failed  to  pay  at  the  time  that 


2i6  Modern  Period 

had  been  stipulated,  and  he  was,  therefore,  punished  by 
being  called  upon  to  pay  not  only  the  sum  borrowed  but 
also  another  sum,  in  order  to  compensate  for  the  delay. 
Nothing  could  be  easier  after  this  than  to  lend  money 
for  a  short  time  gratuitously,  and,  after  the  period  had 
elapsed,  to  pay  interest  under  the  name  and  pretext  of  a 
fine. 

In  practice,  therefore,  the  payment  of  interest  be- 
came general.  And  even  the  theory  of  interest  very 
soon  underwent  modifications.  The  chief  writers  on 
such  economic  subjects  were  the  canonists,  that  is,  men 
who  made  a  study  of  sacred  and  ecclesiastical  law.  Such 
persons  as  St.  Bernardino  of  Siena  and  St.  Antonius  of 
Florence  wrote  long  treatises  on  the  subject,  all  tending 
to  extenuate  and  justify,  in  various  ways,  the  giving  and 
receiving  of  interest.  And  these  opinions  were  drawn 
up  in  manuals  destined  for  the  practical  use  of  con- 
fessors. In  fact,  even  at  the  present  day,  the  books  of 
Catholic  moral  theology  still  make  use  of  the  medieval 
terms,  damnum  emergent,  lucrum  cessans,  periculum 
sortis,  as  justifying  the  payment  of  interest. 

Closely  connected  with  the  discussions  on  the  lawful- 
ness of  interest  in  general  was  the  question  that  was 
raised  regarding  loans  made  to  the  State.  Was  it  lawful 
in  such  cases  to  pay  and  receive  interest?  Some  of  the 
Italian  cities,  reduced  to  the  need  of  demanding 
forced  loans  from  their  citizen  subjects,  had  allowed  a 
small  annual  interest  in  order  to  prevent  dangerous  dis- 
content. It  soon  became  clear  that  such  interest  was 
justified  by  the  reasons  already  alleged.  For,  very  often, 
there  was  lucrum  cessans  or  damnum  emergens.  But 
apart  from  such  considerations,  the  loans  were  compul- 
sory, and  were  not  made  for  the  sake  of  gain.  St. 
Thomas  had  allowed  the  grateful  debtor  to  make  a 


Economic  Theories  of  the  Modern  Period     217 

present  to  his  creditor,  in  return  for  the  favor  he  had 
received.  What,  however,  met  with  more  strenuous 
opposition  was  the  charitable  loan  societies,  called 
monies  pietatis.  These  were  started  and  managed  by 
the  Franciscans,  and  they  conferred  great  benefit  upon 
the  poorer  classes.  But  the  Dominicans  strongly  ob- 
jected to  such  institutions.  Among  their  main  conten- 
tions were  the  absence  of  the  ordinary  conditions  jus- 
tifying the  payment  of  interest,  and  also  the  poverty  of 
the  borrower.  Eventually,  however,  the  Church,  recog- 
nizing the  real  benefit  to  the  borrower,  sanctioned  the 
monies.  And,  at  the  present  day,  on  the  Continent 
they  are  ranked  among  the  most  useful  of  charitable 
institutions;  for  the  small  interest  demanded  not  only 
maintains  the  institution,  but  takes  away  from  the 
loan  its  pauperizing  effects. 

There  is  no  question  but  that  the  medieval  discussions 
on  interest  had  a  great  bearing  on  the  whole  course  of 
economics.  Not  only  do  they  still  leave  important 
traces  in  the  teaching  of  the  Church,  but  they  influenced, 
as  well,  even  secular  legislation  and  largely  affected  the 
economics  even  of  the  Modern  Period. 

We  must  now  consider  some  other  economic  theories, 
which,  though  not  formally  expanded  into  a  system, 
yet  were  tacitly  acted  upon  during  the  Middle  Ages, 
but  during  the  Modern  Period  were  fully  taught  and  de- 
veloped. The  most  important  of  these  theories  are 
those  of  the  Mercantilists  and  Physiocrats.  Ever  since 
the  sixteenth  century,  governments  have  been  actually 
and  avowedly  influenced  by  one  of  these  two  schools  of 
economic  thought. 

The  fundamental  principle  of  the  Mercantile  school 
was  that  money  is  the  same  as  wealth.  Modern  eco- 
nomics have  shown  this  principle  to  be  false.  But  the 


2i8  Modern  Period 

mistake  was  natural.  People's  wealth  is  generally  esti- 
mated in  money,  business  men  only  accumulate  material 
goods  with  the  intention  of  converting  them  into  hard 
cash,  and,  above  all,  money  has  a  value  in  exchange, 
for  with  it  can  be  purchased  an  indefinite  variety  of 
commodities. 

This  principle,  when  once  adopted  by  the  State,  led  to 
very  practical  consequences.  Legislators  thought  they 
must  regulate  trade  and  industry  with  a  view  to  enrich- 
ing the  national  treasury.  They,  therefore,  sought  to 
make  exports  exceed  imports  so  as  to  secure  the  bal- 
ance in  the  precious  metals.  They  paid  great  attention 
to  the  shipping  industry,  and  encouraged  home  manu- 
factures by  such  artificial  means  as  bounties  and  monop- 
olies, and  attached  much  importance  to  increase  of  popu- 
lation. 

Even  in  the  Middle  Ages  some  of  the  methods  of 
the  Mercantile  system  were  practised.  Venice,  for  ex- 
ample, had  sought  by  heavy  duties  to  reserve  for  herself 
the  monopoly  of  commerce  and  trade  under  the  idea 
that  by  so  doing  she  would  enrich  her  own  treasury  at 
the  expense  of  that  of  other  nations.  In  France,  we 
find  that  for  the  same  purpose  many  of  the  provinces 
inaugurated  a  severe  customs  system,  while  in  England, 
as  early  as  the  reign  of  Edward  III,  there  were  laws 
passed  for  the  express  purpose  of  multiplying  the 
precious  metals  inside  the  country.  Under  Edward  III, 
again,  it  was  forbidden  to  export  gold  and  silver  with- 
out a  license,  while  under  Richard  II,  another  law  was 
passed,  that  in  any  foreign  transaction  the  exports  must 
exceed  the  imports. 

It  was  not,  however,  until  the  Tudor  and  Stuart  times 
that  Mercantilism  received  its  fullest  development.  Not 
only  were  laws  passed  of  the  same  character  as  those 


Economic  Theories  of  the  Modern  Period     219 

mentioned  in  the  previous  paragraph,  but  attempts 
were  made  to  confine  by  statute  the  carrying  trade  of 
goods,  to  and  from  the  country,  only  to  English  ships. 
It  was  even  sought  to  force  the  English  to  wear  none 
other  than  English-made  goods.  Thus,  under  Eliza- 
beth, all  had  to  wear  English-made  caps  on  Sundays  and 
holydays,  and,  under  Charles  II,  all  had  to  be  buried 
in  woolen  shrouds  of  native  manufacture. 

Perhaps  the  greatest  financier  and  administrator  con- 
nected with  the  Mercantile  system  was  Colbert,  who 
flourished  in  France  during  the  reign  of  Louis  XIV. 
His  economic  reforms  were  many  and  varied,  but  they 
all  tended  to  this  one  end,  namely,  to  enhance  the  na- 
tional treasury.  Nor  can  it  be  denied  that  he  met  with 
a  great  deal  of  partial  success.  French  industries  of  all 
kinds  prospered,  and  by  means  of  the  wealth  thus  ac- 
cumulated in  the  treasury  Louis  XIV  was  able  to  fight 
a  long  series  of  exhausting  wars.  Indeed,  the  success 
of  Louis  XIV,  during  the  early  part  of  his  reign,  is  the 
best  defense  of  Mercantilism. 

Some  of  the  reforms  were  of  a  general  nature. 
Amongst  these,  the  most  important  were  his  reduction 
of  the  interest  on  public  loans  to  five  per  cent.,  the  re- 
duction of  the  taille,  and  the  construction  of  roads  and 
canals.  But  other  reforms  of  his  were  closely  con- 
nected with  the  principles  of  the  Mercantile  system.  He 
dealt  lavishly  in  such  things  as  privileges,  patents, 
monopolies,  and  honors,  hoping  thus  to  benefit  the  in- 
dustries of  France.  While  heavy  duties  were  imposed 
on  all  foreign-made  goods,  native  manufactures  were  en- 
couraged by  bounties  and  rewards.  The  French  fleet 
was  raised  to  a  high  state  of  perfection,  and  companies 
for  trading  and  settling  in  foreign  parts  received  elab- 
orate patronage  from  the  government. 


- 


2  20  Modern  Period 

Only  one  industry  seems  to  have  received  very  little 
attention,  and  that  was  agriculture.  But  all  other  de- 
partments of  economic  activity  received  a  wonderful  im- 
petus. And  the  French  treasury  during  the  earlier  parts 
of  Louis  XIV's  reign  was  well  equipped  to  meet  all 
emergencies. 

In  the  meantime,  a  new  school  of  economic  thinkers 
had  arisen,  who  held  tenets  directly  opposite  to  those  of 
the  Mercantilists.  The  writers  of  this  school  advo- 
cated as  their  three  fundamental  principles  that  money 
was  not  wealth,  but  only  a  part  of  wealth,  that  the  gov- 
ernment should  not  interfere  with  business  and  trade,  and 
that  agriculture  is  the  chief  source  of  true  wealth.  In 
strict  accordance  with  these  fundamental  principles,  the 
Physiocrats  protested  against  all  such  things  as  patents, 
bounties,  and  monopolies;  also  against  heavy  customs 
duties  and  other  restrictions  to  the  course  of  free  trade. 

The  motto  of  the  Physiocrats  was  laissez  falre. 
They  maintained  that  if  trade  were  left  to  its  own  natu- 
ral laws,  all  nations  would  become  more  wealthy  and 
prosperous.  Quesnay,  one  of  the  great  French  Physio- 
cratic  writers,  was  constantly  reminding  the  French 
king  that  uhe  should  do  nothing  but  let  the  laws  rule." 
Such  advice  was  no  doubt  closely  connected  with  the 
rising  democratic  spirit  of  the  times,  and  especially  with 
the  philosophical  doctrines  broached  by  Rousseau.  In 
the  opinion  of  Rousseau,  all  evils  resulted  from  a  bad 
condition  of  society,  which  was  something  artificial  and 
frequently  quite  opposed  to  the  best  natural  tendencies 
of  humanity.  Remove  such  artificial  obstacles  to  the 
general  well-being,  and  at  once  the  jus  nature,  the  law 
of  nature  —  in  other  words,  the  natural  tendencies  of 
things  —  would  immediately  assert  themselves  with  the 
best  results. 


Economic  Theories  of  the  Modern  Period     221 

It  was  not  long  before  there  appeared  many  ardent 
advocates  of  the  new  system,  not  only  in  England,  but 
also  on  the  Continent.  In  France,  Quesnay,  the  court 
physician  of  Louis  XV,  was  the  first  who  disputed  the 
statement  of  Colbert,  that  money  was  wealth,  and  was 
the  first  to  enunciate  the  doctrine  that  if  the  lands  were 
cultivated,  then  manufacturing  industries  would  take 
care  of  themselves.  In  Italy,  among  many  other  dis- 
tinguished writers,  was  Cesare  Beccaria,  whose  work  on 
this  subject  was  translated  into  twenty-two  languages. 
He  agrees  with  the  other  Physiocrats  in  denouncing 
monopolies  and  privileges,  but  slightly  differs  from  them 
in  the  less  extension  that  he  gives  to  the  doctrine  of  Free 
Trade.  Even  in  Germany,  many  writers  advocated  the 
system,  but  they  did  not  go  to  the  same  length  as  writers 
in  other  countries,  and  the  general  tendency  of  Germany 
always  seems  to  have  been  in  the  opposite  direction. 

It  was  in  England  that  the  doctrine  of  the  Physiocrats 
received  fullest  acceptance  and  development.  Adam 
Smith  in  his  "Wealth  of  Nations"  exposes,  with  great 
exactness  and  subtlety,  the  main  principles  of  the  new 
system.  Occasionally,  he  even  goes  to  extremes,  as 
when  he  declares  that  the  value  of  money  is  purely  con- 
ventional. But,  in  the  main,  his  principles  were  exceed- 
ingly sound,  and  none  knew  better  than  he  how  to  bring 
economic  principles  into  contact  with  the  events  of 
every-day  life.  His  book  soon  acquired  great  influence. 
It  not  only  actuated  to  a  great  extent  the  commercial 
policy  of  Pitt,  but  it  opened  the  way  for  the  formation 
of  the  Free  Trade  School  in  England,  whose  tenets 
have  dominated  England's  commercial  policy  up  to  this 
present  day. 

The  two  schools  of  the  Mercantilists  and  Physiocrats 
still  survive,  and,  under  various  names,  dominate  com- 


222  Modern  Period 

mercial  policies  of  modern  governments.  All  interfer- 
ence of  government  with  trade,  the  imposition  of  tariff 
duties,  the  adoption  of  a  protective  system,  the  regula- 
tion of  such  things  as  railways  and  telegraph  communi- 
cation, and  the  supervision  of  trusts,  labor-unions,  and 
the  like — all  these  are  part  of  the  system  of  Mercan- 
tilism. On  the  other  hand,  there  is  the  system  of  natural 
liberty,  advocated  by  the  Physiocrats.  These  uphold  the 
doctrine  of  Free  Trade,  the  abolition  of  restrictive  duties, 
and  unlimited  powers  of  self-activity  to  all  trade-unions 
of  whatever  description.  It  is  true  that  we  no  longer 
hear  of  Mercantilists  and  Physiocrats.  These  now  obso- 
lete labels  are  replaced  by  those  of  Protectionists  and 
Free-traders.  But  the  opposing  parties  and  principles 
remain  the  same.  And  even  at  the  present  day,  they 
form  distinct  political  badges.  Some  nations,  like  Ger- 
many and  the  United  States,  are  distinctly  Protectionist 
in  their  policy;  England,  on  the  other  hand,  is  still  a 
perspicuous  example  of  a  Free-trading  country.  Even  in 
the  same  State,  they  set  off  opposite  political  parties. 
Thus,  in  America,  the  Republicans  are  Protectionists, 
while  the  Democrats  clamor  for  a  reduction  of  the  tariff ; 
and  in  England,  it  was  the  tariff  question  that  threatened 
to  create  a  serious  division  in  the  Unionist-Conservative 
Party. 


CHAPTER  II 

GEOGRAPHICAL   DISCOVERIES 

FROM  the  fifteenth  century  and  onward  there  took 
place  the  remarkable  geographical  discoveries  that  revo- 
lutionized trade  and  commerce,  altered  the  political 
balance  of  power  in  Europe,  and  gradually  brought 
about  the  formation  of  a  greater  Europe. 

In  these  discoveries,  the  Portuguese  played  an  early 
and  important  part.  Through  the  enterprise  of  Prince 
Henry,  they  discovered  the  Azores  and  the  Madeiras  in 
the  Atlantic.  This  discovery,  however,  was  of  minor 
importance,  in  comparison  with  the  navigation  round 
the  Cape  of  Good  Hope,  made  for  the  first  time  by 
Bartolomeo  Diaz.  Already,  the  old  trade  routes  from 
the  East,  which  ran  through  the  Mediterranean,  con- 
verged in  Venice,  and  then  went  northward  up  by  the 
Rhine  and  the  Danube,  were  seriously  threatened  by  the 
Turks,  and  the  larger  ocean  routes  opened  by  Diaz  en- 
abled the  traders  to  reach  India  by  a  safer  way.  The 
first  successful  accomplishment  of  the  entire  route  is  to 
be  attributed  to  Vasco  da  Gama,  who,  in  1498,  arrived 
at  the  Malabar  coast  in  India.  A  few  years  afterwards, 
the  Portuguese  were  successful  in  another  direction.  In 
1500,  Brazil  was  discovered  by  the  Portuguese  sailor 
Cabral,  and  this  country  formed  one  of  the  most  power- 
ful of  the  Portuguese  dependencies. 

Spain  also  took  a  leading  part  in  geographical  re- 
search. To  Spain,  indeed,  belongs  the  honor  of  the  dis- 
covery of  America.  It  is  true  that  Columbus  was  a 
Genoese  by  birth,  but  Spain,  alone,  of  the  maritime  na- 
tions, gave  him  the  necessary  encouragement  and  means 


224  Modern  Period 

for  his  famous  voyages.  In  1492  took  place  his  event- 
ful discovery,  which  had  the  result  of  placing  within 
Spanish  jurisdiction  most  of  the  central  and  eastern  por- 
tions of  the  great  continent. 

France  had  also  taken  a  share,  though  a  minor  one, 
in  the  rage  for  exploration.  As  early  as  the  reign  of 
Louis  XII,  French  seamen  had  discovered  Cape  Bre- 
ton and  Newfoundland,  together  with  the  Gulf  of  St. 
Lawrence.  Under  Francis  I,  this  discovery  was  fol- 
lowed by  the  exertions  of  Jacques  Cartier,  who  sailed  up 
the  gulf  as  far  south  as  Montreal. 

Holland,  also,  came  in  for  a  considerable  amount  of 
jealousy,  on  account  of  her  keenness  for  exploration. 
The  Dutch  navy  began  during  the  revolt  of  the  Nether- 
lands against  Philip  II.  Brill  was  captured  by  the  re- 
calcitrant Dutch  ships,  and  this  circumstance  became  the 
first  sign  of  the  strength  and  expansiveness  of  the  Dutch 
navy.  In  1598  their  ships  succeeded  in  reaching  India 
by  the  Cape  route,  and  this  was  now  followed  by  impor- 
tant Dutch  settlements  in  Africa  itself.  In  1609  New 
York  began  to  grow  under  the  industrious  hands  of  the 
Dutch,  who  had  settled  there,  while  certain  names  still 
testify  to  the  fact  that  a  considerable  portion  of  the 
Hudson  River  district  was  inhabited  by  the  same  enter- 
prising people. 

But  the  nation  that  was  eventually  destined  to  carry 
off  the  palm  for  maritime  discovery  was  England.  At 
first,  she  was  behind  in  the  race.  She  had  been  antici- 
pated by  other  nations,  such  as  Spain  and  Portugal. 
Where,  however,  they  had  gone,  she  also  followed,  and 
with  more  permanent  success,  while  in  later  times,  she 
achieved  most  important  discoveries  on  her  own  ac- 
count. By  the  year  1553,  the  Englishman,  Chancellor, 
successfully  reached  the  White  Sea,  and  began  trading 


Geographical  Discoveries  225 

negotiations  with  Russia,  and  between  1532  and  1595 
successful  voyages  were  made  to  the  Guinea  coast 
of  Africa,  and  to  Brazil  and  Mexico.  More 
independent  voyages  of  discovery  were  made  under 
Queen  Elizabeth  by  Frobisher  and  Drake;  the  former 
attempted,  though  without  any  practical  result,  to 
find  out  a  northwest  passage  to  China,  by  cruising 
round  the  top  of  the  American  continent,  while  the 
latter  successfully  accomplished  a  voyage  round  the 
world.  What  made  Drake's  voyage  the  more  remark- 
able, was  the  fact  that  he  traveled  in  a  westerly  direc- 
tion, and  with  his  small  craft  had  to  encounter  the  furi- 
ous storms  that  prevail  from  the  west.  Nor  was 
attention  paid  merely  to  sea  voyages.  Under  Queen 
Elizabeth,  Raleigh  had  made  himself  famous  for  his 
attempt  to  explore  the  valley  of  the  Orinoco,  and  by  his 
foundation  of  the  Virginia  colony. 

It  was,  however,  during  the  eighteenth  century  that 
England  began  to  take  the  decided  lead  in  maritime  en- 
terprise. Captain  Cook  then  discovered  the  eastern 
coast  of  Australia,  and  also  New  Zealand.  His  work 
was  afterwards  completed  by  others  who  surveyed  these 
lands,  and  revealed  their  true  position,  nature,  and 
powers  of  production.  In  the  central  parts  of  South 
Africa,  important  journeys  of  exploration  were  made 
by  such  men  as  James  Bruce,  Mungo  Park,  and  David 
Livingstone.  It  is  mainly  owing  to  the  exertions  of 
these  men  that  at  the  present  day  we  know  so  much  of  in- 
terior Africa,  and  that  very  soon  a  complete  communica- 
tion between  North  and  South  Africa  will  have  become 
an  accomplished  fact. 

Such,  in  rough  outline,  were  the  main  geographical 
discoveries  of  the  Modern  Period,  and  with  just  such 
indications  as  are  sufficient  for  our  purpose.  We  must 


226  Modern  Period 

now  consider  some  of  the  more  important  results  of 
these  discoveries,  both  upon  the  commerce  and  upon 
the  political  condition  of  Europe. 

The  immediate  result  was  to  widen  the  whole  market. 
All  sorts  of  hitherto  unknown  commodities  were  now 
imported  from  far-off,  distant  lands.  New  comforts 
and  luxuries  created  new  wants,  and  these,  again,  neces- 
sitated a  continued  series  of  relations  with  the  uttermost 
countries  of  the  earth.  From  the  mines  of  Spanish 
America  came  gold  and  silver  in  great  abundance. 
Spain,  therefore,  became  for  a  time  the  richest  country 
in  Europe.  Unfortunately,  however,  she  neglected  the 
true  wealth,  which  consists  in  native  industry  and  manu- 
factures. Though  possessed  of  more  gold  and  silver 
than  any  other  nation,  her  decline  became  portentously 
rapid.  Indeed,  she  was  but  the  channel  through  which 
the  precious  metals  were  distributed  throughout  the 
other  countries.  By  degrees,  the  average  supply  of  gold 
and  silver  increased  all  round.  Of  this,  the  general  re- 
sults were,  in  the  main,  beneficial.  It  is  true  that  prices 
suddenly  rose,  and  that  wages  did  not  rise  with  the  same 
rapidity,  thereby  causing  temporary  distress  to  the 
working  classes.  But,  gradually,  things  adjusted  them- 
selves to  the  altered  condition  of  the  currency.  In  any 
case,  capital  became  more  abundant,  and  became  more 
easy  of  transfer  from  one  form  of  employment  to  an- 
other. 

This  widening  of  the  market  also  affected  the  condi- 
tion, even,  of  local  markets  and  industries.  They  no 
longer  catered  for  narrow  areas.  The  commercial 
world,  like  the  intellectual  world  of  the  Renaissance,  had 
sprung  suddenly  upon  the  view  of  men.  And,  for  the 
first  time,  business  men  and  manufacturers  became  ac- 
quainted with  the  more  general  and  universal  laws  that 


Geographical  Discoveries  227 

regulated  the  market  and  the  connections  between  sup- 
ply and  demand. 

Another  effect  was  the  abandonment  of  the  old  trade 
routes.  Already,  these  had  been  seriously  threatened 
by  the  Turk.  Under  the  influence  of  the  Sultan  Selim, 
the  Turks  had  done  their  best  to  ruin  the  Eastern 
trade.  Alexandria  ceased  to  be  the  great  emporium  that 
it  once  had  been;  the  Nile  valley  became  a  valley  of 
desolation,  and  soon  it  was  only  too  evident  that  all  com- 
munication between  Europe  and  India  would  be  com- 
pletely cut  off. 

It  was  just  at  this  time  that  the  discoveries  were  made 
which  enabled  men  to  get  what  they  wanted  from  other 
countries,  or  through  other  ways  of  communication. 
The  route  to  India,  by  way  of  the  Cape  of  Good  Hope, 
still  kept  up  part  of  the  old  trade  communication,  and 
the  discovery  of  the  western  lands  opened  up  an  en- 
tirely new  market. 

The  political  results  of  these  changes  were  also  in- 
calculable. Among  them  was  the  rapid  decline  of 
Venice.  It  was  at  Venice  that  converged  the  old,  im- 
portant trading  routes  from  the  East,  and  from  Venice 
the  merchandise  was  carried  up  the  waters  of  the  Dan- 
ube and  the  Rhine.  Naturally,  the  cities  along  the 
banks  of  these  rivers  shared  in  the  commercial  and  con- 
sequent political  greatness.  Such  towns  as  Worms, 
Mainz,  Speyer,  Bingen,  and  Hamburg  owed  their  impor- 
tance mainly  to  their  situation  along  these  trade  routes. 
Even  the  greatness  of  the  Hanseatic  League  was  to  be 
partly  attributed  to  the  same  cause.  But  now,  with  the 
extinction  of  the  old  trade  routes,  these  German  cities 
and  the  League  alike  began  to  languish,  and  for  a  time 
suffered  an  eclipse. 

Disastrous  results  from  the  destruction  of  the  old 


228  Modern  Period 

trade  routes  appeared  also  in  Germany.  As  we  have  al- 
ready said,  the  towns  along  the  Rhine  underwent  a 
period  of  decline,  though  it  proved  but  temporary. 
Moreover,  there  is  little  doubt  but  that  the  peasant  ris- 
ings in  Germany,  in  the  sixteenth  century,  were  partly 
owing  to  the  distress  occasioned  by  the  loss  of  what  had 
been  to  them  a  source  of  living  in  previous  times. 

Political  events  followed  fast  and  thick.  In  the  six- 
teenth century,  we  find  Venice  almost  on  the  verge  of  ex- 
tinction. Her  commerce  was  crippled,  part  of  her  colo- 
nial possessions  were  taken  away,  and  even  her  own  au- 
tonomy was  threatened.  Only  her  own  native  strength 
and  the  force  of  circumstances  enabled  her  to  survive — 
the  energy  of  the  Republic,  the  ability  of  the  military 
commander,  Petigliano,  combined  with  the  strong  natu- 
ral position  of  Venice  to  ward  off  the  invader.  Also, 
discord  and  strife  divided  the  members  of  the  league 
that  had  been  formed  against  her.  Venice,  therefore, 
still  remained  a  factor  in  Italian  politics,  but  her  su- 
premacy became  impaired,  and  her  trade  passed  into 
other  hands. 

Perhaps  of  still  greater  dramatic  significance  was  the 
abandonment  of  the  Mediterranean  as  a  center  of  com- 
merce and  human  interest,  a  circumstance  also  brought 
about  by  the  destruction  of  the  old  trade  routes.  From 
most  ancient  times,  the  Mediterranean  had  been  the  cen- 
ter of  all  that  was  grandest  in  human  activity.  Pheni- 
cians,  Greeks,  and  Romans  plowed  their  barks  across 
its  waters.  Also,  in  medieval  times,  the  greatest  mer- 
chant fleets  of  civilized  countries  still  continued  to  make 
it  the  center  of  many  human  hopes  and  fears.  Now,  all 
this  was  changed.  The  ocean,  and  no  longer  the  inland 
sea,  was  to  become  the  center  of  commerce  and  political 
activity.  Civilization,  in  its  course  from  East  to  West, 


Geographical  Discoveries  229 

now  lingered  over  the  waters  of  the  Atlantic,  until,  by 
the  twentieth  century,  it  gradually  finds  its  way  even  to 
the  waters  of  the  Pacific. 

Such  a  change  was  not  without  profound  significance 
for  the  future  of  the  nations  whose  shores  were  washed 
by  the  great  Atlantic.  An  extraordinary  stimulus  was 
given  to  the  shipbuilding  industry,  and  to  the  forma- 
tion of  the  important  seaport  towns  and  harbors.  What 
Venice  had  been,  that  England,  France,  Holland,  now 
strove  to  be.  And  thus,  an  intense  rivalry,  and  often 
bitter  strife,  was  created  between  these  nations. 

We  now  come  to  the  last  important  consequence  of 
the  great  geographical  discoveries  of  the  sixteenth  cen- 
tury, and  that  is  the  formation  of  important  colonies 
all  over  the  world. 

In  America,  there  were  the  Spanish  colonies  in  the 
south,  central,  and  eastern  portions;  the  Portuguese  in 
the  southwest;  the  English  colonies  on  what  is  now  the 
Atlantic  seaboard  of  the  United  States ;  and  the  French 
colonies  in  Canada.  In  Africa,  were  Dutch,  English, 
Portuguese,  and  French  colonies.  And,  later  on,  there 
were  the  important  English  colonies  in  Australia  and 
New  Zealand. 

There  was  thus  given  an  impetus  to  the  colonizing 
movement,  which  has  never  since  died  out.  Even  at 
the  present  day,  almost  every  European  nation,  and 
even  America  itself,  has  a  colonial  policy  which  is 
fraught  with  great  importance.  Even  Germany,  whose 
comparatively  inland  position  would  little  mark  her  out 
for  a  colonizing  nation,  has  aspirations  in  this  direction, 
which  may  possibly  bring  her  into  collision  with  some  of 
the  other  powers. 

The  colonizing  movements,  even  during  the  sixteenth 
and  seventeenth  centuries,  became  a  source  of  emulation 


230  Modern  Period 

and  strife.  Each  country  was  desirous  of  retaining  for 
itself  the  exclusive  possession  of  the  commerce  of  its  own 
colony.  Many  wars  were  the  result  of  this  policy,  and 
much  loss  of  mutual  profit.  Rulers,  at  that  time,  did 
not  perceive  that  the  exclusive  confinement  of  trade 
between  the  mother  country  and  the  colony  meant  the 
deprivation  to  both  of  the  profits  that  might  have 
accrued  from  consulting  the  productive  powers  and  the 
wants  of  other  countries.  But  the  most  serious  result 
of  all  was  the  unnecessary  wars  that  were  fought  out, 
for  the  purpose  of  thus  limiting  the  market.  Such  wars 
were  waged  not  only  for  the  obtainment  of  an  end  that 
was  in  itself  fruitless,  but  they  caused  a  great  deal  of 
useless  taxation  and  consequent  suffering  to  the  persons 
that  waged  them. 


CHAPTER  III 

PRODUCTION   OF  WEALTH 

UP  TO  the  sixteenth  century,  the  main  source  of 
wealth  in  England  had  been  the  agricultural  industry. 
Rough  calculations  have  estimated  that  about  nine- 
tenths  of  English  industry  was  agricultural.  Even  in 
the  Modern  Period  of  history,  agriculture  also  played  a 
very  important  part.  But  in  order  to  understand  more 
clearly  the  relation  between  modern  agriculture  and 
modern  wealth,  it  will  be  necessary  to  trace  first  the  im- 
portant revolutions  that  were  slowly  taking  place  in 
English  agricultural  industry  from  the  fourteenth  cen- 
tury and  onward. 

During  feudal  times,  the  land  had  been  worked  in 
the  following  way:  In  each  separate  manor,  or  district, 
presided  over  by  the  lord,  the  land  was  regularly  laid 
out  and  divided,  partly  according  to  a  basis  of  property, 
partly  according  to  a  basis  of  purpose  or  use.  First 
of  all,  there  was  the  land  that  was  owned  and  worked 
directly  by  the  lord  of  the  manor  himself,  or  by  his 
bailiff ;  secondly,  there  was  the  land  that  belonged  to  the 
dependent  villages,  some  of  whom  were  freeholders,  but 
the  great  majority  were  villeins.  These  villeins  held 
their  land  in  greater  or  less  dependence  upon  their  lord, 
and  had  to  pay  a  rent  which  at  first  was  discharged  by 
personal  service,  but  was  afterwards  commuted  into  a 
money  payment.  Besides  these  personal  lands  of  the 
lord  and  the  tenants,  there  were  also  the  common  waste, 
the  common  pasture,  and  the  meadows.  Though  the 
land  was  thus  divided  up  according  to  ownership,  the 
several  proprietors  did  not  keep  their  respective  lands 


232  Modern  Period 

together.  There  were  no  such  boundaries  as  ditches, 
hedges,  or  stone  walls.  Oftentimes,  some  of  the  ten- 
ants' buildings  would  be  interspersed  in  the  lord's  own 
demesne,  and  the  invariable  custom  was  for  each  ten- 
ant to  have  his  land,  not  altogether  in  one  place,  but 
divided  up  into  small  strips,  distributed  here  and  there 
over  a  large  area.  The  only  sign  of  different  ownership 
was  the  small  fringes  of  border  grass,  some  of  which 
can  be  seen  even  at  the  present  day. 

Such  a  system  may  seem  strange  to  our  modern  ideas, 
but  it  suited  the  needs  of  those  times.  The  land  could 
be  more  easily  worked  collectively,  and  the  old  feudal ; 
spirit  of  cooperation  allowed  greater  freedom  o?  action. 
Also,  such  an  arrangement  provided  for  greater  equality 
in  the  distribution  of  land.  No  single  individual  could 
enjoy  the  monopoly  of  the  richer  portions  of  land. 

Thus  far,  the  land  was  divided  on  a  basis  of  owner- 
ship. But  the  basis  of  purpose  or  use  must  also  be  taken 
into  account.  The  land  was  partly  pasture,  that  is,  used 
for  feeding  cattle,  and  partly  arable,  used  for  the  grow- 
ing of  crops.  Then,  the  arable  land  itself  was  sub- 
divided into  three  fields.  One  of  these,  during  one  sea- 
son, was  allowed  to  lie  fallow;  during  the  next  season, 
the  field  that  had  been  sown  for  wheat  would  be  sown 
for  barley,  and  the  field  that  had  been  sown  for  barley 
would  be  fallow;  while  the  field  that  had  lain  fallow 
would  be  sown  for  wheat.  In  this  way  each  of  the  three 
fields  would  continually  pass  through  the  three  stages  of 
being  sown  for  wheat,  for  barley,  and  then  being 
allowed  to  lie  fallow. 

This  system,  even  during  the  Middle  Ages,  gradually 
underwent  certain  alterations.  Many  of  the  landlords 
had  found  it  convenient  to  accept  money  payment  from 
their  tenants,  in  place  of  personal  service.  Thus,  by  de- 


Production  of  Wealih  233 

grees,  there  grew  up  in  England  a  class  of  freeholders, 
when,  suddenly,  the  Black  Plague  depopulated  the 
country,  and  the  landlords,  in  search  of  laborers,  by  fair 
means  or  foul,  tried  to  force  the  tenants  back  into  their 
old  position  of  holders  of  land  on  condition  of  payment 
of  personal  service.  Thereupon  followed,  as  a  protest, 
the  Peasants'  Revolt.  Opinions  differ  as  to  the  tangible 
result  of  this  outbreak,  but,  for  some  years  afterwards, 
both  kinds  of  rent  seem  to  have  been  in  vogue. 

There  were,  however,  other  changes  that  were  des- 
tined to  revolutionize  completely  the  whole  aspect  of 
English  agricultural  industry.  The  first  of  these  was 
the  system  of  enclosures.  By  this  is  meant  that  the  land 
which  had  hitherto  lain  open  was  now  divided  off  by 
railings,  fences,  and  ditches.  This  change  was  brought 
about  by  the  enormous  growth  of  the  weaker  industry. 
It  was  found  far  more  profitable  to  discard  arable  land 
and  go  in  for  pasture,  so  as  to  accommodate  the  great 
flocks  of  sheep.  For,  not  only  did  such  enclosed  spaces 
mean  great  security  for  the  sheep  themselves,  but  the 
accumulation  of  manure  on  one  spot  was  highly  bene- 
ficial to  the  land. 

Such  enclosures  took  place  on  all  the  different  kinds 
that  we  have  mentioned.  Naturally,  there  was  very 
little  difficulty  in  the  way  of  the  landlord  and  the  free- 
hold tenant  enclosing  their  own  lands.  But,  with  regard 
to  the  waste  lands  and  common  pasturage,  there  was 
some  difficulty.  Enclosures  of  these  lands,  made  by  the 
lord  of  the  manor,  would  have  seemed  in  many  cases  an 
infringement  of  public  right,  especially  if  there  was  a 
tradition  that  such  lands  were  originally  the  communal 
property  of  the  whole  village.  The  landlord,  however, 
very  likely  adopted  the  view  that  such  lands  were  ori- 
ginally the  lord's  own  personal  property,  which,  either 


234  Modern  Period 

through  beneficence  or  for  the  sake  of  personal  con- 
venience, he  had  allowed  to  be  used  by  the  village. 
Whatever  view  may  have  been  correct,  the  landlord 
was  in  the  stronger  position,  and  better  able  to  enforce 
his  claim. 

In  Germany,  the  lord's  attempt  to  enforce  his  rights 
over  the  common  lands  was  partly  the  cause  of  the 
Peasants'  Revolt.  We  can  gather  this  from  some  of 
the  demands  of  the  peasants.  They  asked  that  the  com- 
mon fields  and  woods  should  be  restored,  that  the  fuel 
in  the  woods  should  be  free  to  all,  and  that  they  should 
have  access  to  the  game,  fowl,  and  fish.  The  lord  had 
evidently  been  attempting  to  encroach  upon  the  tradi- 
tional rights  of  the  villeins  to  the  common  lands  and 
streams. 

With  regard  to  the  enclosure  of  the  property  of  the 
customary  tenants,  there  was  a  far  more  serious  strug- 
gle, and  much  consequent  distress.  The  tenants  held 
that  they  had  a  customary  right  to  the  perpetual  ten- 
ancy of  the  land,  and  that,  so  long  as  they  paid  the  rent, 
they  could  not  be  evicted.  On  the  other  hand,  the  land- 
lord held  that  they  were  only  tenants  at  will. 

While  usage  and  prescription  were  on  the  side  of 
the  tenant,  there  was  also  strong  evidence  in  support 
of  the  contention  of  the  landlord.  Most  of  the  leases 
contained  the  expressions,  "at  the  will  of  the  lord,"  or 
"for  life,"  and  these  clearly  pointed  to  a  terminal  ten- 
ancy. Moreover,  the  old  feudal  custom  by  which  a 
fine,  called  "relief,"  had  to  be  paid  by  the  successor  to  an 
estate,  also  implied  that  the  land  did  not  follow  rigidly 
the  law  of  inheritance.  In  any  case,  the  lord,  whether 
by  force,  or  by  use  of  legal  technicalities,  generally 
managed  to  evict  the  tenant. 

Such  evictions  caused  at  first  a  great  amount  of  dis- 


, 

Production  of  Wealth  235 

tress.  The  tenants  were  cut  off  from  the  soil  which 
they  had  been  cultivating  for  ages.  The  class  of  the 
small  farmer  began  to  decline  rapidly.  At  the  same 
time,  there  also  arose  the  acute  problem  of  finding  work 
for  the  unemployed.  The  ejected  tenants,  who  had  been 
allowed  to  till  their  own  soil,  and  also  obtain  additional 
revenue  by  sharing  in  the  cultivation  of  the  other  unen- 
closed neighboring  lands,  now  found  themselves  bereft 
alike  of  home  and  employment.  Starvation  and  vaga- 
bondage became  exceedingly  prevalent,  and  were  one 
of  the  chief  causes  of  the  introduction  of  the  poor-laws 
under  Henry  VIII  and  Elizabeth. 

At  the  same  time,  it  must  be  admitted  that  the  farm- 
ing industry,  as  a  whole,  became  more  prosperous.  Not 
only  did  the  enclosed  pasture  lands  favor  the  breeding 
of  sheep,  but  even  the  arable  land  itself  became  more 
productive,  since  it  now  lay  more  together,  and  a  more 
uniform  system  of  cultivation  now  became  possible. 

Another  important  change  in  agriculture  was  the  in- 
troduction of  what  is  known  as  convertible  husbandry. 
This  meant  that  the  same  land  would  at  one  time  be 
used  for  pasture  and  at  another  time  for  plowing. 
Much  more  was  obtained  from  the  soil  in  this  way  than 
when  part  of  the  land  was  allowed  to  lie  fallow,  as  was 
the  case  in  the  three-field  system. 

This  process  underwent  still  further  development  in 
the  eighteenth  century,  under  Lord  Townshend.  When 
this  nobleman  had  retired  from  the  ministry,  he  devoted 
much  of  his  attention  and  time  to  the  agricultural  indus- 
try, and,  by  borrowing  a  great  deal  from  the  methods 
employed  by  the  Dutch,  considerably  forwarded  the  ad- 
vance of  this  industry.  It  was  he  that  gave  to  turnips 
and  artificial  grasses  a  definite  place  in  the  rotation  of 
crops.  At  first,  the  experiment  was  conducted  on  a  com- 


236  Modern  Period 

paratively  small  scale  on  his  little  farm  at  Raynham  in 
Norfolk,  and  its  results  were  so  successful  that  it  was 
copied  in  other  places  as  well,  and  became  general  all 
over  England. 

This  marked  the  complete  accomplishment  of  the 
agrarian  revolution.  Enclosures  were  carried  out  more 
vigorously  than  ever,  no  fewer  than  three  thousand  en- 
closure acts  being  passed  under  the  reign  of  George  III. 
The  small  farmer  became  still  more  scarce.  His  place 
was  taken  by  the  large  capitalist  farmer,  constantly 
experimenting,  working  on  scientific  principles,  and 
bringing  the  land  up  to  the  highest  degree  of 
cultivation. 

Still  one  more  change  has  to  be  noted,  in  connection 
with  the  agricultural  industry,  and  that  is  the  reclama- 
tion of  waste  lands.  In  the  eastern  counties  of  England, 
there  had  been  large  tracts  of  low-lying  land,  as  yet 
unfit  for  cultivation,  because  they  were  so  frequently 
flooded  by  the  waters  that  drained  them.  Even  in 
Elizabeth's  time,  there  had  been  some  thought  of  re- 
claiming these  lands,  and  an  act  was  passed  for  that 
purpose.  Not,  however,  till  the  seventeenth  century 
was  the  idea  carried  into  execution.  Dutchmen  were 
then  entrusted  with  the  design,  and  also  with  the  actual 
work  of  the  undertaking.  New  channels  were  made, 
which  completely  carried  off  the  surplus  water  into  the 
sea,  and  enabled  the  land  to  be  used  for  purposes  of 
agriculture. 

Even  this  apparently  beneficent  operation  met  with  a 
great  deal  of  discontent.  A  great  number  of  persons 
had  hitherto  found  a  respectable  living  in  hunting  the 
fowl  and  fish  that  abounded  in  those  regions.  More- 
over, the  inhabitants  had  settled  down  to  the  peculiar 
condition  of  those  places,  and  were  by  no  means  anxious 


Production  of  Wealth  237 

for  a  change.  Frequent  collisions  resulted  between  the 
Dutch  workmen  and  the  fensmen,  in  which  the  former, 
supported  by  the  government,  were  completely  victori- 
ous. The  temporary  sufferings  of  the  local  inhabitants 
were  afterwards  more  than  compensated  by  the  rich- 
ness of  the  soil  reclaimed,  and  the  abundant  harvests 
that  rejoiced  the  heart  of  the  farmer. 

On  the  whole,  the  agricultural  industry  made  great 
strides  during  the  Modern  Period.  The  enclosure  of 
lands,  the  use  of  convertible  husbandry,  the  introduc- 
tion of  the  growth  of  winter  roots  which,  without  ex- 
hausting the  soil,  provided  winter  food  for  cattle — all 
these  added  largely  to  the  agricultural  wealth  of  the 
country. 

But  even  the  advance  in  the  agricultural  industry  can 
hardly  be  compared  with  the  progress  made  in  the 
manufacturing  industries  during  the  same  period. 

Hitherto,  the  domestic  system  had  prevailed.  This 
meant  that  there  had  been  no  large  factories,  such  as 
we  see  in  the  present  day,  but  that  the  cloth  was  spun 
and  made  up  in  the  cottages  of  the  workmen.  And 
there  is  no  doubt  that  this  system  had  its  advantages.  It 
gave  the  workmen  more  liberty.  They  could  work 
when  they  pleased  and  just  as  long  as  they  pleased. 
Also,  they  could  apply  themselves  more  easily  to  other 
and  subsidiary  branches  of  industry.  A  great  part  of 
the  work  was  done  in  the  country,  and,  when  times  were 
slack  and  work  scarce,  it  was  easy  for  the  family  still  to 
earn  a  livelihood  by  agricultural  labor. 

There  was  also  a  certain  amount  of  economy  in  the 
direct  communication  between  the  producer  and  the 
consumer.  There  were  no  middlemen  in  those  days 
who  absorbed  part  of  the  profits,  and  although  the  mar- 
ket may  have  been  narrow,  yet  there  were  no  enormous 


238  Modern  Period 

fluctuations  in  the  conditions  of  supply  and  demand. 
Employment,  therefore,  was  fairly  regular. 

But  the  disadvantages  of  such  a  system  were  very 
great.  There  was  no  division  of  labor.  One  man  had 
to  do  a  great  many  things,  and  the  result  was  that  he 
had  too  little  leisure  in  which  to  make  himself  an  expert 
in  any  special  department  of  the  trade,  while  a  consider- 
able time  was  lost  in  passing  from  one  occupation  to  an- 
other. Then,  again,  hand-made  goods,  put  together  in 
the  laborer's  cottage,  were  necessarily  deficient  in  quan- 
tity, and  very  often  in  quality.  It  was  also  exceedingly 
hard  for  the  master  to  exercise  a  proper  supervision 
over  his  men.  Accordingly,  frequent  complaint  was 
made  of  dishonesty  on  the  part  of  the  man  who  embez- 
zled the  material. 

However,  this  old  system,  with  all  its  attendant  ad- 
vantages and  disadvantages,  was  done  away  with  by  the 
wonderful  mechanical  inventions  of  the  eighteenth  cen- 
tury. In  1753  was  invented  the  flying  shuttle  by  Kay, 
and  after  him  came  Arkwright,  who,  in  1769,  invented 
the  water  frame,  and  Crompton,  who,  in  1799,  first  in- 
troduced the  mule. 

The  first  results  of  these  inventions  were  the  decline 
of  the  woolen  industry  and  the  rise  of  the  cotton  manu- 
facture, which  has  maintained  its  supremacy  even  to  this 
day.  Greater  quantity  and  better  quality  of  goods  were 
produced  at  a  lower  price.  A  greater  demand  was 
created,  and  high  wages  and  profits  brought  about  a 
season  of  great  prosperity. 

It  must  not  be  supposed,  however,  that  these  inven- 
tions were  adopted  immediately  all  over  the  country. 
In  some  counties,  machinery  was  not  used  until  ten  or 
fifteen  years  after  it  had  been  adopted. 

What  chiefly  hastened  the  new  movement  and  com- 


Production  of  Wealth  239 

pletely  revolutionized  the  whole  system  of  manufactur- 
ing was  the  discovery  of  new  driving  power,  by  which 
large  pieces  of  machinery  could  be  simultaneously  set 
in  motion.  In  the  year  1785,  the  steam  engine,  which 
had  already  been  invented  by  Watt,  was  introduced  into 
the  cotton  factory.  Up  till  then,  water  power  had  been 
used.  Lancashire  was  singularly  favored  in  this  respect, 
and  hence  speedily  became  remarkable  for  its  manufac- 
turing growth.  Even  when  steam  was  introduced, 
Lancashire  still  occupied  a  very  favorable  position, 
owing  to  its  large  stores  of  coal. 

It  was  the  discovery  of  coal  that  completed  the 
industrial  revolution,  by  bringing  about  the  factory  sys- 
tem. It  was  then  that  the  mills,  that  had  been  scattered 
throughout  the  same  district,  now  grouped  themselves 
together,  so  as  to  form  large  towns,  and  that  we  now 
find  huge  buildings,  employing  thousands  of  operatives. 
The  rate  of  production  was  multiplied  indefinitely. 
Consumers  benefited  considerably,  both  as  regards  qual- 
ity and  cheapness  of  goods,  and  even  during  the  terrible 
Napoleonic  wars  English  manufactured  goods  found 
their  way  into  the  heart  of  the  enemy's  country.  Indeed, 
it  is  said  that  the  French  soldiers  marched  to  their 
Russian  campaign  clad  in  English-made  coats  and  shoes. 

It  is  true  that  there  were  frequent  riots,  owing  to  the 
fear  that  labor  would  be  displaced  by  machinery.  But 
the  evils  of  the  factory  system  did  not  lie  here.  For  the 
invention  and  use  of  machinery  only  means  that  the 
coarser  processes  are  done  by  bars  and  wheels  and  metal. 
Human  intelligence  and  human  hands  will  still  be 
wanted  to  guide  the  machinery.  Statistics  also  show 
that,  whereas  before  the  invention  of  machinery  the 
number  of  the  employed  could  be  counted  by  hundreds, 
afterwards  they  amounted  to  thousands. 


240  Modern  Period 

The  real  abuses  connected  with  the  factory  system 
are  of  quite  a  different  nature.  One  of  these,  which  is 
rather  sentimental,  concerns  the  relations  between  the 
employer  and  employed.  Heretofore,  the  master  knew 
individually  the  few  workmen  under  his  control,  but  the 
workmen  now  are  to  him  only  a  vast  army  of  units. 
In  the  words  of  Carlyle,  a  cash  nexus  now  takes  the 
place  of  the  living  bond  between  the  master  and  the 
workman. 

This,  however,  is  not  in  itself  such  a  serious  evil. 
But  incidentally  it  might  easily  lead,  and  actually  has 
led,  to  a  great  deal  of  seeming  callousness  on  the  part 
of  masters  toward  their  operatives.  This  was  especially 
so  during  the  early  days  of  the  factory  system.  Young 
children  were  often  employed,  and  made  to  work  several 
hours  of  the  day,  in  a  stuffy  atmosphere,  and  deprived 
of  all  opportunities  of  schooling  and  physical  develop- 
ment. Also,  very  little  care  was  taken  of  the  health  and 
safety  even  of  adults.  Factories  were  often  very  badly 
ventilated,  too  little  time  allowed  for  meals,  and  no  care 
taken  to  place  fencing  round  dangerous  machinery. 

Such  abuses,  however,  were  greatly  remedied  by  the 
factory  legislation.  Through  the  influence  of  such  men 
as  Sir  Robert  Peel,  Lord  Althorp,  and  the  Earl  of 
Shaftesbury,  the  great  philanthropist,  many  acts  were 
passed  for  the  purpose  of  improving  the  material  and 
even  mental  condition  of  the  employed.  By  these  acts, 
the  employment  of  child  labor  was  greatly  curtailed, 
over-crowding  and  night  work  were  forbidden,  and 
proper  ventilation  and  cleanliness  were  insisted  upon. 
Regulations  were  also  made  for  the  proper  fencing 
of  dangerous  machinery  and  for  the  protection  of 
men  engaged  in  particularly  dangerous  or  unwhole- 
some employments.  Still  more  important,  perhaps, 


Production  of  Wealth  241 

was  the  appointment  of  factory  inspectors  whose 
duty  it  was  to  inspect  the  different  factories,  to  report 
abuses,  and  make  what  further  suggestions  might  be 
necessary. 

Social  improvements  soon  followed  in  the  wake  of 
legislative  enactments.  The  number  of  churches  and 
chapels  began  to  increase,  and  the  number  of  saloons  to 
decrease.  Schools  were  established  and  institutions  set 
afoot  for  the  purpose  of  encouraging  thrift  and  provid- 
ing harmless  recreation  for  the  evening  hours.  All  this 
has  combined  to  make  the  condition  of  the  manufactur- 
ing class  quite  tolerable,  if  not  comfortable.  At  the 
present  day,  even  delicate  girls  labor  in  the  factories, 
and  find  their  employment  both  easy  and  sanitary.  And 
there  is  no  doubt  that  the  middle  class,  as  a  whole, 
have  derived  great  benefit  from  the  increased  quantity 
of  goods  and  lowering  of  prices  brought  about  by  the 
manufacturing  system. 

Great,  indeed,  has  been  the  influence  of  machinery  on 
production  and  sale  of  wool  and  cotton  goods,  but  the 
same  influence  must  also  be  considered  in  relation  to  cer- 
tain departments  of  commercial  activity. 

Among  these  was  the  smelting  of  iron.  Hitherto, 
only  wood  had  been  used  for  this  purpose.  The  south- 
eastern counties  of  England  had  been  well-nigh  the 
exclusive  seat  of  the  industry,  but  operations  there  were 
gradually  slackening,  owing  to  the  exhaustion  of  the 
forests.  For  a  time,  there  was  indeed  a  partial  revival 
of  industry,  owing  to  the  use  of  coal  in  place  of  wood, 
and  this  also  had  the  effect  of  removing  the  locality  of 
the  industry  from  the  southeastern  to  the  northern  coun- 
ties of  England,  like  Lancashire  and  Durham,  where 
coal  is  more  abundant.  Even  here  the  progress  was 
slow,  until  the  celebrated  invention  of  Dr.  Roebuck. 


242  Modern  Period 

He  conceived  the  idea  of  applying  Watt's  steam  engine 
to  effect  more  powerful  blast  in  the  furnaces.  Success 
followed  his  efforts,  and  soon  the  metallurgical  indus- 
tries took  deep  root  in  the  northern  parts  of  England, 
among  the  most  conspicuous  of  the  cities  owing  their 
prosperity  to  this  cause  being  Darlington,  Middlesbor- 
ough,  and  Hartlepool — all  in  the  northern  counties  of 
England. 

Very  important  too  was  the  influence  of  machinery  in 
facilitating  the  means  for  the  freightage  of  goods  from 
one  town  to  another,  and  from  one  county  to  another. 
Already,  before  the  invention  of  steam,  it  had  been 
perceived  that  the  development  of  manufactures  was 
greatly  dependent  upon  the  rapidity  and  cheapness  with 
which  goods  could  be  transported  from  place  to  place. 
At  first,  canals  were  chiefly  relied  upon.  Most  famous 
was  the  Bridgewater  Canal,  constructed  by  the  Duke  of 
Bridgewater,  in  1761,  in  order  to  connect  together  the 
two  cities  of  Manchester  and  Liverpool.  Another  impor- 
tant canal  was  the  Grand  Trunk  Canal,  connecting 
Gloucester  with  the  river  Severn,  while,  even  m  quite 
recent  times,  the  Manchester  Ship  Canal  is  contributing 
largely  to  the  shipping  trade  of  Manchester. 

It  was  the  railway,  however,  that  was  destined  in 
later  years  to  perform  the  greater  part  of  the  inland 
carrying  trade.  Between  1821  and  1848,  were  con- 
structed the  earliest  railways.  At  first,  the  rails  were 
roughly  laid,  and  the  speed  was  extremely  slow.  But 
improvements  were  soon  devised,  and  even  in  1839  the 
train  between  London  and  Birmingham  ran  at  the  rate 
of  twenty  miles  an  hour. 

These  means  of  transit  manifestly  gave  an  extraordi- 
nary impetus  to  the  manufacturing  system — in  fact,  to 
industries  of  all  descriptions.  The  markets  became 


Production  of  Wealth  243 

widened,  and  the  increased  demand  necessitated  also  an 
increase  in  the  quantity  of  production.  At  the  same 
time,  there  was  also  created  in  the  community  the  impor- 
tant class  of  wealthy  manufacturers,  which  was  to  form 
such  an  influential  middle  section  of  society.  This  class 
was  rising  into  existence  even  during  the  time  of  Pitt,  and 
his  policy  deliberately  inaugurated  the  movement  by 
which  political  influence  became  gradually  transferred 
from  the  hands  of  the  rural  magnates  into  the  hands  of 
the  rising  merchant  aristocracy,  with  the  result  that  the 
general  policy  of  England  became,  more  than  ever, 
guided  by  economic  principles. 

So  far  we  have  been  dealing  exclusively  with  England, 
but  it  must  not  be  forgotten  that  what  took  place  in 
England  was  also  repeated  on  the  Continent.  Indeed, 
one  or  two  countries,  like  France,  slightly  anticipated 
the  English  manufacturing  system.  But  some  specific 
mention  ought  to  be  made  regarding  the  production  of 
wealth  in  the  great  continent  on  the  other  side  of  the 
Atlantic. 

Up  to  the  time  of  the  American  Revolution,  the  main 
industry  of  the  Americans  was  agricultural,  and  even  at 
the  present  day  it  still  remains  one  of  the  chief  sources 
of  American  wealth.  Owing  to  the  enormous  territory 
comprised  within  the  States,  and  the  great  variety  of 
latitude,  the  agricultural  products  are  perhaps  more 
varied  than  in  any  other  country  of  the  world.  Wheat, 
corn,  and  flax  are  grown  in  the  temperate  regions  of  the 
States,  while,  in  the  South,  cotton,  tobacco,  and  tropical 
fruits  are  to  be  met  with  in  large  quantities.  One  great 
difference  between  American  agriculture  and  that  in  the 
old  countries  is  the  method  of  farming.  In  Europe, 
what  is  called  the  intensive  method  prevails.  This 
means  that  the  farmer,  by  means  of  rotation  of  crops, 


244  Modern  Period 

and  the  employment  of  the  latest  scientific  expedients, 
gets  as  much  as  is  absolutely  possible  from  the  same  plot 
of  ground.  But,  in  America,  in  early  times,  the  exten- 
sive system  was  followed — the  farmer,  after  exhausting 
one  plot  of  ground,  going  on  to  another.  But,  now, 
especially  in  the  Eastern  States,  the  farmer  is  beginning 
to  follow  the  intensive  system.  Besides  the  surface 
products  of  the  soil,  there  are  also  many  valuable  de- 
posits of  ores.  During  the  first  fifty  years  of  the  nine- 
teenth century,  were  discovered  extensive  gold  mines  in 
the  Carolinas,  Georgia,  and  especially  in  California; 
and,  later  on,  silver  mines  in  Nevada.  And  what,  per- 
haps, are  of  still  more  permanent  value,  there  are  the 
coal  mines  of  Pennsylvania,  while,  lately,  discoveries 
point  to  considerable  quantities  of  the  same  ore  in  South 
Dakota. 

The  manufacturing  system  of  America  is  also  a  great 
contributor  to  the  national  wealth.  Even  before  the 
American  Revolution,  there  had  been  some  factories, 
and  the  iron  trade  had  already  made  some  progress. 
But  England  had  always  been  jealously  afraid  of  com- 
petition on  the  part  of  her  colonies.  She  made  illegal  all 
manufactures,  hoping  that  the  colonists  would  thus  be 
forced  to  import  English-made  goods.  The  result  was 
to  cripple  American  manufactures.  But  after  the  Revo- 
lution manufacturing  spread  all  over  America  and 
prospered. 

The  same  inventions  that  had  achieved  so  much  suc- 
cess in  England  were  used  also  in  America,  and  they 
brought  about  the  same  results  in  the  creation  of  the 
factory  system,  and  in  the  rearing  of  a  very  wealthy 
manufacturing  class.  It  was  also  the  invention  of  the 
cotton  gin  that  had  such  tremendous  political  conse- 
quences in  the  southern  section  of  America,  on  account  of 


Production  of  Wealth  245 

the  great  impetus  that  it  gave  to  the  slave  trade,  and 
the  consequent  collision  between  the  slave  States  and  the 
anti-slave  States. 

In  America,  also,  the  transport  system  played  a  very 
great  part  in  the  development  of  manufactures.  These 
may  be  named  in  their  order  of  development,  as  follows : 
trails,  roads,  canals,  and  railways.  The  first  railway 
was  the  Baltimore  and  Ohio  line,  constructed  in  1830. 
Between  that  date  and  1870,  there  were  constructed 
68,484  miles  of  railroad.  There  are  now  trunk  lines, 
connecting  all  the  important  towns  of  the  States,  and 
these  lines  have,  perhaps,  more  than  anything  else, 
tended  to  break  down  the  barriers  between  the  different 
States.  Besides  facilitating  the  transport  of  freight  and 
passengers,  the  railways  also  play  a  very  important  part 
even  in  opening  up  new  centers  of  business  and 
commerce. 

Having  now  indicated  the  chief  sources  of  wealth, 
both  in  the  Old  and  New  World,  we  must  turn  to  con- 
sider the  way  in  which  this  vast  amount  of  wealth  is 
distributed. 


CHAPTER  IV 

DISTRIBUTION   OF  WEALTH 

WHEN  the  wave  of  revolution  had  already  affected 
so  many  departments  of  human  activity,  both  political 
and  economic,  there  is  little  matter  for  wonder  if  com- 
merce also  underwent  some  very  drastic  changes.  In- 
deed, the  altered  cultivation  of  land,  and  the  growth  of 
the  manufacturing  system,  not  only  entailed  a  greater 
accumulation  of  wealth,  but  also  materially  affected  its 
distribution. 

With  regard  to  extent,  trade  and  commerce  advanced 
by  leaps  and  bounds.  By  the  fifteenth  century  commerce 
had  considerably  expanded.  In  return  for  her  exports 
of  wool,  lead,  and  tin,  England  imported  such  commodi- 
ties as  glass,  silks,  and  velvets  from  Italy;  linens  and  fine 
cloths  from  the  manufacturing  towns  of  the  Nether- 
lands ;  wines  and  salt  from  Gascony  and  Guienne.  Even 
with  such  distant  countries  as  Russia,  there  was  a  certain 
amount  of  trade,  though  this  was  very  irregular. 

Naturally,  the  improvement  of  English  shipping  un- 
der the  Tudors  largely  contributed  to  this  result.  A 
great  deal  of  merchandise  was  now  carried  in  English 
ships.  Moreover,  the  English  men-of-war  now  took  a 
more  active  part  in  the  abolition  of  piracy.  The  pirates 
of  that  time  had  been  almost  as  audacious  as  the  pirates 
that  molested  Rome  in  the  days  of  Cicero,  and  almost 
every  merchant  vessel  had  to  be  accompanied  by  a  pro- 
tecting convoy.  Under  the  early  Stuarts,  great  attempts 
were  made  to  remedy  the  evil,  but  it  was  not  until  the 
reign  of  Charles  II,  when  the  naval  power  of  England 


Distribution  of  Wealth  247 

had  been  established  in  the  Mediterranean,  that  the 
scourge  was  at  last  substantially  removed. 

While  the  English  navy  was  continually  increasing, 
England  also  was  fortunate  with  regard  to  the  rivalry 
which  she  had  to  undergo  from  the  commercial  quarters 
of  Antwerp.  Owing  to  the  hostility  of  Emperor  Max- 
imilian, the  trade  of  Bruges  had  passed  almost  entirely 
into  the  hands  of  Antwerp.  In  the  words  of  the  con- 
temporary Italian  writer,  Giucciardini,  "Antwerp  ex- 
ported jewels,  precious  stones,  silver  bullion,  quicksilver; 
wrought  silks,  gold  and  silver  cloth  and  thread,  spices, 
drugs,  sugar,  cotton,  cinnamon,  lemons,  fine  and  coarse 
serges,  tapestry,  madder,  hops  in  large  quantities,  glass, 
salt  fish,  and  othermerceriesof  all  sorts, besides armsof  all 
kinds,  ammunition  for  war,  and  household  furniture." 

These  goods  clearly  indicate,  by  the  variety  of  their 
nature,  the  enormous  extent  of  the  trade  between  Ant- 
werp and  other  countries.  But  Antwerp  began  to  de- 
cline. Continual  sackings  and  massacres,  during  the 
administration  of  Alva,  and,  later  on,  the  closing  of  the 
Scheldt  by  the  Treaty  of  Westphalia,  had  the  effect  of  ex- 
tinguishing for  some  considerable  time  her  commercial 
activity  and  transferring  it  to  England. 

When,  again,  the  colonial  system  was  introduced, 
England  was  equally  fortunate  in  the  race  for  trade  com- 
petition. When  the  Dutch  became  rivals  to  the  Eng- 
lish, hostile  combinations  of  rival  powers  brought  them 
to  the  ground.  Not  only  in  the  Mediterranean  did  the 
Dutch  begin  to  lose  their  trade,  but  also  in  the  West 
Indies  and  in  India,  where  they  had  been  the  foremost 
pioneers  and  discoverers. 

What  at  first  might  have  seemed  an  obstacle  became 
a  blessing  in  disguise,  namely,  the  rising  agricultural 
and  manufacturing  conditions  in  other  countries.  The 


248  Modern  Period 

silk  industries  in  France,  that  were  fostered  and  pro- 
moted by  the  wise  Duke  de  Sully,  and  the  great  carpet 
manufactures,  reestablished  by  Colbert,  were  the  means 
of  providing  England  with  new  business,  and  impelled 
her  to  produce  still  more  of  the  goods  that  were  required 
to  pay  for  these  luxuries.  In  Germany,  the  great  linen 
manufactures;  in  Spain,  the  cultivation  of  the  vine  and 
the  accumulation  from  her  colonial  possessions  of  such 
goods  as  spices  and  Peruvian  bark;  and,  in  Italy,  the 
power  to  export  oil,  potash,  cork,  and  marble — all  this 
tended  in  the  same  way  to  supply  England's  demands, 
and  at  the  same  time  to  promote  more  and  more  the 
spirit  of  industry  and  enterprise.  In  spite  of  mutual 
jealousies  and  government  restraints,  the  increase  of 
wealth  in  one  country  is  sure  to  bring  about,  indirectly, 
the  increase  of  wealth  in  other  countries.  There  are, 
of  course,  exceptions.  But  such  only  tend,  if  anything, 
to  illustrate  the  general  rule  that  under  normal  condi- 
tions wealth  tends  to  diffuse,  rather  than  to  concentrate 
into  one  spot  alone. 

Besides  this  extensive  European  market,  England 
also  enjoyed  the  benefits  that  accrued  from  trade  com- 
munication with  her  many  colonies  beyond  the  seas. 
From  the  American  plantations  came  cotton,  rice,  and 
tobacco.  Also,  the  extensive  slave  trade,  carried  on  be- 
tween Africa  and  the  plantations,  was  indirectly  a  source 
of  revenue  to  England,  especially  since,  by  the  Assiento 
Treaty  between  England  and  Spain,  the  former  country 
enjoyed  the  exclusive  right  of  shipping  the  negroes  from 
Africa  into  the  plantations.  Then,  in  much  later  years, 
there  was  a  considerable  amount  of  trade  between  Eng- 
land and  her  colonies  in  the  far  Western  seas,  in  India, 
and  in  Australia.  During  the  American  wars,  which 
stopped  the  supply  of  cotton  from  America,  England 


Distribution  of  Wealth  249 

was  forced  to  depend  for  the  supply  mainly  upon  India. 
Amongst  other  goods  that  were  imported  into  the 
mother  country  from  India  were  tea,  coffee,  sugar, 
ivory,  saltpeter,  spices,  and,  what  were  very  important, 
jute  and  indigo.  From  Australia  came  also  kauri 
gum,  the  precious  metals,  timber,  sperm  oil,  and,  during 
the  last  century,  great  quantities  of  frozen  meat. 

Naturally,  the  trade  between  England  and  the  colo- 
nies received  a  great  deal  of  attention.  Unfortunately, 
the  mother  country  was  dominated  by  a  very  selfish  and 
short-sighted  policy.  She  imagined  that  it  would  be  to 
her  advantage  to  prevent  the  colonies  from  trading  in 
certain  commodities  with  any  other  nation  but  herself. 
This  was  especially  so  in  regard  to  the  American  colo- 
nies. A  distinction  was  made  between  enumerated  goods, 
which  the  colonists  were  allowed  to  export  into  England 
only,  and  unenumerated  goods,  which  they  were  allowed 
to  export  to  other  European  countries.  The  enumerated 
goods  were  practically  all  those  that  could  not  be  pro- 
duced on  English  soil,  while  among  the  unenumerated 
goods  were  salted  provisions,  corn,  and  timber.  Sugar 
and  rum  were  also  permitted,  but  for  special  reasons, 
these  commodities  being  manufactured  by  Englishmen 
who  could  use  their  influence  in  Parliament  for  their 
own  interests. 

Besides  limiting  the  commerce  of  these  colonies,  Eng- 
land also  attempted  to  stop  their  manufactures.  In 
doing  so  she  was  actuated,  partly  by  the  fear  of  the 
importation  of  rival  manufactured  goods  from  the 
colonies,  and  partly  by  a  desire  to  find  in  the  colonies 
a  constant  market  for  the  sale  of  English-made  goods. 
The  woolen  and  iron  manufactures  were  especially  pro- 
hibited, as  these  were  most  likely  to  be  dangerous  com- 
petitors. 


250  Modern  Period 

In  spite,  however,  of  these  difficulties,  the  net  pro- 
duction of  the  world's  wealth  continually  increased,  and 
commerce  continually  widened  its  activity;  nor  was  it 
long  before  a  reaction  began  to  appear.  Artificial  bar- 
riers were  seen  to  be  not  only  too  weak  to  accomplish 
their  purpose,  but  even  positively  injurious  to  the  coun- 
try from  which  they  emanated,  and  when  these  barriers 
were  swept  away  altogether,  commercial  prosperity 
made  still  more  rapid  strides,  while  wealth  accumulated 
in  still  greater  profusion. 

In  the  organization,  distribution,  and  application  of 
such  wealth,  there  were  some  very  powerful  agencies 
that  must  now  be  carefully  considered  in  detail. 

First,  there  were  the  merchant  companies.  The  spirit 
of  association,  that  was  so  strong  in  the  Middle  Ages, 
reappears  also  during  the  Modern  Period,  only  in  a  dif- 
ferent form.  Individuals  could  not,  and  did  not,  carry 
on  the  greater  part  of  the  trade  between  the  different 
countries.  Danger  from  pirates  and  want  of  capital 
would  alone  have  been  sufficient  deterrents.  The  only 
resource  was  to  combine  together  and  to  trade  in  com- 
panies, and  the  trading  companies  that  resulted  had 
practically  the  entire  enjoyment  and  control  of  com- 
merce. Some  of  them  were  only  what  was  called  regu- 
lated companies.  This  means  that  the  individual  still 
retained  the  command  and  disposal  of  his  capital.  But, 
in  the  joint-stock  companies,  the  capital  invested  by 
the  individual  was  practically  owned  and  controlled  by 
the  company.  Evidently,  the  powers  of  operation  in 
these  companies  were  very  much  greater  than  in  the 
others  and,  in  fact,  the  great  companies  of  the  Modern 
Period  were  all  joint-stock  companies. 

Among  the  earliest  companies  to  be  formed  was  the 
Russian  Company,  which  made  its  appearance  under 


Distribution  of  Wealth  251 

Edward  VI.  Although  called  the  Russian  Company, 
it  did  business  with  other  countries  besides  Russia,  even 
going  as  far  as  Persia.  It  was  also  greatly  interested 
in  whale  fishing. 

Under  the  reign  of  Elizabeth,  there  rose  into  impor- 
tance the  Merchant  Adventurers'  Company.  This,  in 
its  origin,  was  not  an  English  company,  but  had  been 
formed  in  Antwerp,  and  from  there  spread  throughout 
the  empire.  In  England,  it  received  a  charter 
from  Henry  IV,  and  gradually  acquired  a  great  deal 
of  English  trade  between  England  and  the  Netherlands. 
Perhaps  owing  to  its  being  a  regulated  company,  it  ac- 
quired a  more  national  character  than  some  of  the  joint- 
stock  companies.  It  seems  to  have  been  regarded  as  an 
institution  that  might  be  applied  to  any  place  and 
locality.  Thus,  we  read  of  the  Merchant  Adventurers 
of  Exeter  and  of  the  royal  burghs  of  Scotland. 

The  policy  of  Elizabeth  also  favored  the  promotion 
of  another  company;  namely,  the  Levant  Company, 
chartered  in  1581.  Venetian  trade  in  the  Mediter- 
ranean, which  had  been  so  disorganized  by  the  destruc- 
tion of  the  old  trade  routes,  now  passed  mainly  into  the 
hands  of  this  company.  It  also  did  a  considerable  trade 
in  spices  with  Persia,  and  it  became  for  a  time  so  influen- 
tial as  partly  to  damage  the  trade  even  of  the  famous 
East  Indian  Company.  Not  until  1875  did  the  privi- 
leges of  the  Levant  Company  altogether  cease. 

Unlike  the  two  previous  companies,  which  were  regu- 
lated companies,  the  Royal  African  Company  was  a 
joint-stock  company.  It  was  granted  a  royal  charter 
in  1672  by  Charles  II.  But  it  had  never  received  Par- 
liamentary sanction,  and  therefore  the  only  exclusive- 
ness  of  trade  that  it  was  allowed  to  enjoy  was  the  privi- 
lege of  levying  a  duty  of  ten  per  cent,  on  the  exports  of 


252  Modern  Period 

those  who  did  not  belong  to  the  company.  Gold  and 
negroes  were  the  two  chief  commodities  that  it  exported 
from  Africa.  The  gold  went  to  England,  where  it  was 
coined  into  guineas,  while  the  negroes  were  exported  to 
the  American  plantations.  Owing  to  new  competition 
from  outsiders,  and  the  great  expense  of  maintaining 
forts  and  factories,  the  company,  in  1750,  was  recon- 
stituted so  as  to  include  all  the  merchants  then  trading 
with  Africa.  But  even  this  company  failed,  and  by  the 
nineteenth  century  it  had  died  out  altogether. 

Of  far  greater  political  importance  were  the  com- 
panies that  were  formed  in  the  American  plantations. 
The  first  of  these  companies  to  receive  a  charter  was  the 
Virginia  Company,  in  1587.  Owing  to  a  series  of  dis- 
asters, the  charter  proved  abortive.  In  1606,  another 
attempt  was  made,  and  charters  were  granted  to  a  Lon- 
don Company  and  a  Plymouth  or  West  of  England 
Company,  the  latter  operating  in  the  northern,  the 
former  in  the  southern  regions  of  the  Atlantic  sea- 
board. While  the  West  of  England  Company  failed, 
the  London  Company  took  root  and  flourished.  Order 
was  established,  industry  encouraged,  churches  built,  and 
the  whole  work  of  colonization  thoroughly  carried  out. 
Unfortunately,  however,  the  affairs  of  the  colony  were 
badly  administered  by  the  management  at  home,  and  in 
1674  the  charter  was  taken  away  and  the  company 
dissolved.  But  in  the  meantime  the  seeds  of  democratic 
government  had  been  sown,  and  the  representative  as- 
sembly of  the  Virginian  Burgesses,  for  a  long  time, 
stood  forth  as  the  champions  of  liberty  and  popular  gov- 
ernment. 

Of  all  the  companies,  however,  none  could  compete 
in  political  importance  with  the  East  Indian  Company, 
which  received  the  first  charter  from  Elizabeth  in  1602. 


Distribution  of  Wealth  253 

From  the  very  first,  the  company  prospered.  It 
speedily  supplanted  both  the  Portuguese  and  the  Dutch. 
Important  depots  were  established  at  Calicut  and  Delhi, 
while  Calcutta,  at  first  only  a  small  trading  station  pur- 
chased by  the  company,  afterwards  became  the  seat  of 
the  English  government  in  India.  Its  trade  grew  with 
equal  rapidity.  Tea,  saltpeter,  spices,  and  jewels  were 
the  chief  commodities  imported  by  its  means  from 
India  to  England. 

Opposition,  however,  arose  from  various  quarters. 
In  a  short  time,  there  was  formed  the  French  East 
Indian  Company,  which  proved  a  very  formidable  rival. 
Dupleix,  the  French  governor,  by  his  skilful  administra- 
tion, and  by  diplomatic  use  of  the  dissensions  among 
the  native  princes,  both  strengthened  and  expanded 
French  influence  until  at  one  time  it  seemed  as  though 
the  English  would  be  driven  out  of  India.  The  situa- 
tion, however,  was  saved  by  the  skill  and  bravery  of 
Lord  Clive,  who  ended  by  completely  overthrowing  the 
power  of  the  French,  and  preparing  the  way  for  the 
British  Empire  in  India. 

Opposition  was  also  encountered  from  certain  mer- 
chants who  were  jealous  of  the  monopoly  enjoyed  by  the 
company,  and  tried  to  break  through  that  monopoly, 
both  by  force  and  by  agitations  in  Parliament.  This  dif- 
ficulty, however,  was  also  solved  by  the  reconstruction  of 
the  company  in  such  a  way  as  to  admit  these  rival  com- 
petitors. 

By  the  second  half  of  the  eighteenth  century,  the  East 
Indian  Company  began  to  assume  quite  a  political  aspect. 
The  London  directors  of  the  company  practically  con- 
trolled and  administered  all  the  legislation  and  judicial 
business  of  the  country.  Great  difficulty,  it  is  true, 
was  encountered  in  the  administration  of  tropical  coun- 


254  Modern  Period 

tries  by  people  living  in  temperate  zones,  and  it  was  not 
to  be  wondered  at  if  here,  also,  there  should  have  been 
great  disturbances  and  grave  abuses. 

The  company's  rule  began  to  be  subjected  to  severe 
discussions,  and  the  result  was  the  passing  of  Pitt's  East 
India  Bill,  which  established  a  Board  of  Control  to 
watch  over  and  correct  the  political  activity  of  the  com- 
pany. This  was  the  beginning  of  a  succession  of  steps 
by  which  the  reins  of  political  power  were  transferred 
from  the  company  into  the  hands  of  the  government.  And 
by  1858,  at  the  time  of  the  suppression  of  the  terrible 
Indian  Mutiny  which  broke  out  among  the  Sepoys, 
or  native  soldiers,  the  whole  of  the  country  was  declared 
formally  annexed  to  the  British  Crown. 

What  has  been  said  will  be  quite  sufficient  to  indicate 
the  political  as  well  as  the  commercial  importance  of  the 
trading  companies.  In  a  future  section,  we  shall  also  see 
how  these  companies  affected  the  course  of  international 
politics. 

Besides  the  companies,  another  great  instrument  in 
the  development  of  commerce  was  the  currency  system, 
the  changes  that  were  made  in  the  monetary  systems  of 
the  different  countries. 

Between  the  reigns  of  William  I  and  Edward  I,  the 
coins  in  use  were  the  great  or  four  pence,  the  silver 
penny  and  halfpenny  and  farthing.  Between  that 
time  and  the  reign  of  Elizabeth,  there  were  also  intro- 
duced the  gold  nobles,  the  sovereign,  the  crown,  the 
shilling,  and  the  sixpenny  and  threepenny  piece.  During 
the  reign  of  Elizabeth  was  also  introduced  the  gold 
guinea,  made  at  first  equivalent  to  sixty-two  shillings, 
but  reduced  during  the  reign  of  Charles  II  to  twenty- 
one  shillings.  Great  difficulties  were  constantly  expe- 
rienced in  regulating  the  currency  in  such  a  way  as  to 


Distribution  of  Jl'ealth  255 

fit  in  with  the  requirements  of  commerce,  and  there  were 
important  fluctuations  in  the  values  of  the  precious 
metals.  Then  again,  debasement  of  the  coin  was  a 
constant  source  of  difficulty.  The  odious  practice  first 
began  on  the  Continent,  and  when  debased  foreign  coins 
found  their  way  into  England  the  king  thought  there 
was  no  other  alternative  but  to  depreciate  the  English 
coinage  as  well;  otherwise  all  the  good  coins  would  be 
picked  out  and  hoarded,  or  exported  abroad,  according 
to  the  well-known  formula  of  Gresham,  that  bad  money 
drives  out  good.  Already,  on  the  Continent,  various 
writers  had  pointed  out  the  disastrous  effects  of  such  a 
practice. 

In  France,  the  learned  bishop,  Nicholas  Oresme,  and 
in  Italy,  Andreas  de  Pampinis,  pointed  out  the  great 
injury  that  resulted  from  it  to  the  commonwealth.  Few 
arguments,  however,  were  so  clear  and  scathing  as  those 
of  Lowndes,  who  says:  "Great  contentions  do  daily 
rise  among  the  king's  subjects,  in  fairs,  markets,  shops, 
and  other  places  throughout  the  kingdom,  about  the 
passing  or  refusing  the  same,  to  the  disturbance  of  public 
peace;  many  bargains,  doings,  and  dealings  are  totally 
prevented  and  laid  aside  which  lessen  trade  in  general; 
persons,  before  they  conclude  in  any  bargains,  are  neces- 
sitated first  to  settle  the  price  or  value  of  the  very  money 
they  are  to  receive  for  their  goods ;  and  if  it  be  in  guineas 
at  a  high  rate,  or  in  dipt  or  bad  money,  they  set  the 
price  of  their  goods  accordingly,  which,  I  think,  has 
been  one  great  cause  of  raising  the  price,  not  only  of 
merchandise,  but  even  of  edibles,  and  other  necessaries 
for  the  sustenance  of  the  common  people,  to  their  great 
inconvenience.  The  receipts  and  collection  of  the  pub- 
lic taxes,  revenues,  and  debts  are  exceedingly  retarded." 
These  words  touch  upon  the  main  evils  that  resulted 


256  Modern  Period 

from  the  debasement  of  the  coin  of  the  realm,  and  they 
go  far  to  justify  the  assertion  of  the  Italian,  Musciati 
Guidi,  who  maintained  that  the  debasement  was  more 
injurious  to  the  country  than  an  open  war. 

It  was,  however,  one  of  the  great  merits  of  Elizabeth 
that  she  perceived  this,  and  that  she  tried  to  apply  an 
efficient  remedy.  The  old  coins  that  had  become  de- 
preciated were  either  continued  in  circulation  at  their 
debased  value,  or  presented  at  the  mint  for  exchange, 
while  new  coins  of  the  proper  value  were  coined  and 
issued.  Great  benefits  resulted  from  this,  both  in  regard 
to  definiteness  of  contracts  and  the  payment  of  taxes.  It 
is  true  that  prices  did  not  fall,  but  this  was  owing  to 
other  causes,  among  them  being  the  enormous  quantity 
of  bullion  imported  into  Europe  from  the  American 
mines. 

Besides  the  debasement  of  the  coin,  yet  another  diffi- 
culty presented  itself,  and  that  was  the  natural  fluctua- 
tion in  the  value  of  the  precious  metals  and  the  relation 
between  gold  and  silver.  During  the  seventeenth  cen- 
tury, the  distinction  was  not  clearly  seen  between  the 
intrinsic  and  conventional  value  of  money.  It  was  be- 
lieved that  money  could  have  whatever  value  might  be 
legally  attributed  to  it  by  the  State.  Hence,  for  pur- 
poses of  fraud,  the  currency  in  various  States  was  often 
artificially  raised  in  value.  Writers  of  those  times  pro- 
posed as  a  remedy  an  international  agreement,  but  the 
age  was  not  advanced  enough  for  such  a  process. 

Still  more  important  and  lasting  was  the  relation  be- 
tween gold  and  silver.  At  first,  only  silver  was  the 
standard  coin ;  that  is  to  say,  all  bargains  and  contracts 
were  expressed  in  terms  of  silver  coinage.  But  after- 
wards gold  also  appeared  as  the  standard  coin,  and  by 
the  fifteenth  century  great  confusion  resulted  therefrom, 


Distribution  of  Wealth  257 

for  it  was  impossible  to  define  the  constant  ratio  between 
gold  and  silver.  The  difficulty  was  only  removed  when 
gold  was  accepted  as  the  only  standard,  and  silver  as- 
sumed the  position  of  token  money,  that  is,  money  whose 
value  depends  not  upon  its  intrinsic  value,  but  upon  the 
relation  it  conventionally  bears  to  the  standard  coinage. 

Whether  it  is  better  to  adopt  only  one  of  them  is  still 
hotly  disputed.  It  is  called  the  battle  of  the  standards. 
At  the  present  day,  the  silver  standard  has  been  almost 
everywhere  rejected,  but  the  question  still  remains 
whether  gold  shall  be  adopted  as  the  exclusive  standard, 
or  whether  silver,  also,  shall  be  included.  The  disad- 
vantages of  the  double  standard  are  obvious,  since  silver 
beyond  a  certain  quantity  becomes  exceedingly  heavy 
and  cumbersome.  On  the  other  hand,  if  gold  were 
adopted  as  the  exclusive  standard,  it  would  become 
largely  enhanced  in  value,  and  silver  would  become  cor- 
respondingly depreciated. 

In  the  United  States,  the  silver  question  figures  very 
largely  in  politics.  At  the  present  time,  silver  is  not 
entirely  discarded.  Silver  certificates,  or  paper  money, 
promising  to  pay  in  silver  dollars,  are  issued  and  circu- 
lated. This,  however,  is  only  a  compromise,  and  prob- 
ably the  question  will  again  arise  in  a  form  still  more 
acute. 

Very  closely  connected  with  the  currency  system,  both 
in  the  Old  and  New  World,  is  the  banking  system. 
Already,  as  we  have  seen,  there  were  banks  in  medieval 
Europe,  such  as  the  banks  of  Venice,  Genoa,  and  Am- 
sterdam. But,  during  the  Modern  Period,  banks  were 
destined  to  undergo  far  greater  development,  and  to  ful- 
fil very  important  and  manifold  functions. 

During  the  sixteenth  century,  the  London  goldsmiths 
seemed  to  have  a  great  deal  of  banking  business, 


258  Modern  Period 

although  they  had  received  no  charter,  and  had  not  ac- 
quired the  formal  status  of  a  bank.  These  goldsmiths 
frequently  received  money  to  keep  on  deposit,  and  they 
also  advanced  loans  of  money.  Cromwell  carried  on 
extensive  transactions  with  these  private  bankers,  bor- 
rowing from  them  large  sums  of  money.  So  also  did 
James  I  and  Charles  II,  the  latter  of  whom  proved 
a  rather  unsatisfactory  customer. 

When  William  III  was  seated  on  the  throne,  some 
more  extensive  system  was  required  for  borrowing  money 
for  the  royal  treasury.  A  new  scheme,  therefore,  was 
originated  by  William  Paterson,  a  Scotchman,  and  was 
carried  into  execution  by  Montague,  chancellor  of  the 
exchequer.  The  scheme  was  to  contract,  not  merely 
temporary,  but  permanent  loans.  A  number  of  London 
merchants  were  allowed  to  form  themselves  into  a  bank 
with  full  charter  and  special  privileges,  on  condition  of 
their  making  a  loan  to  the  government  of  £1,200,000 
at  eight  per  cent.  The  bank  proved  a  great  success. 
By  the  beginning  of  the  eighteenth  century,  it  had  quad- 
rupled its  capital,  and  whereas  at  first  the  Grocers'  Hall 
was  large  enough  for  its  operations,  in  later  years  the 
bank  premises  occupied  the  area  of  a  whole  parish,  and 
gave  employment  to  many  hundreds  of  persons. 

The  Bank  of  England  has  always  occupied  a  very 
important  position,  both  in  regard  to  the  English  Gov- 
ernment, and  to  the  world  in  general.  It  keeps  an  open 
account  with  the  government,  undertakes  the  manage- 
ment of  the  national  debt,  and  is  the  medium  through 
which  the  interest  on  the  national  debt  is  paid.  It  also 
advances  money  to  the  government.  In  regard  to  the 
commercial  world  in  general,  the  issue  department  of 
the  bank  circulates  bank  notes  which  are  of  legal  tender, 
and,  what  is  of  supreme  importance,  it  is  the  great  central 


Distribution  of  Wealth  259 

banking  reserve,  both  of  the  provincial  banks  in  Eng- 
land, and  also  of  the  great  Continental  countries.  The 
surplus  money  of  the  provincial  banks  of  England — 
that  is  to  say,  such  money  as  is  not  laid  out  in  invest- 
ments, or  kept  at  hand,  in  order  to  discharge  current  ac- 
counts— is  deposited  with  the  Bank  of  England.  The 
banks  of  the  different  European  countries,  in  like  man- 
ner, now  deposit  their  reserve  with  the  Bank  of  Eng- 
land. Hitherto,  the  Bank  of  France  had  shared  this 
privilege  together  with  the  Bank  of  England.  But  after 
the  Franco-German  War,  the  Bank  of  England  be- 
came the  sole  bank  of  deposit  for  the  Continental  coun- 
tries also.  How  great,  therefore,  is  the  responsibility 
of  the  Bank  of  England  entailed  by  this  fact  has  been 
made  pretty  evident  on  various  occasions.  One  instance 
alone,  however,  will  suffice.  A  few  years  ago,  the  Ger- 
man Government  wished  to  draw  out,  at  an  inopportune 
moment,  an  enormous  sum  of  money,  and  was  only  pre- 
vented from  thus  causing  a  widespread  disaster  by  the 
readiness  with  which  it  obeyed  the  warning  to  defer 
the  demand  until  the  reserve  in  the  Bank  had  again  be- 
come replenished. 

Other  banks  besides  the  great  national  Bank  of  Eng- 
land are  the  joint-stock  banks  and  the  private  banks. 
These  also  do  a  considerable  amount  of  business,  and 
are  very  useful  for  making  loans  and  initiating  enter- 
prises throughout  the  local  areas,  while  their  current 
accounts  are  extremely  useful  for  the  swollen  business 
transactions.  And  here  again  England  leads  the  way, 
for  in  the  Continental  countries,  partly  owing  to  greater 
unwillingness  to  make  deposits,  partly  owing  to  fear  of 
foreign  war,  the  amount  of  business  done  by  the  banks 
is  comparatively  small. 

In  America,  there  is,  at  the  present  day,  no  bank  in 


260  Modern  Period 

any  way  resembling  the  Bank  of  England,  either  in  its 
nature,  or  in  the  importance  of  its  functions.  Under 
Hamilton's  administration  an  attempt  was  indeed  made 
to  form  a  United  States  Bank,  and  in  many  ways  this 
was  made  to  resemble  the  Bank  of  England.  Thus,  in 
both  cases  it  was  forbidden  to  trade  save  in  bills  of  ex- 
change and  gold  and  silver  bullion,  and  in  both  cases  the 
amount  of  issue  was  definitely  limited. 

Unfortunately,  the  first  Bank  of  the  United  States, 
owing  to  the  downfall  of  the  Federal  Party,  with  which 
it  was  connected,  came  to  an  end.  A  second  Bank  of 
the  United  States  was  formed  in  the  year  1817.  But 
this  also  failed,  owing  to  the  inveterate  hostility  of 
President  Jackson,  and  after  this  no  further  attempt  was 
made  to  organize  a  bank  for  all  the  States  until  1907. 

There  were  formed,  however,  banks  of  a  different 
and  more  local  nature  which  have  fulfilled  a  very  im- 
portant function  in  the  world  of  commerce.  The  na- 
tional banks  were  constituted  by  the  act  of  Congress  of 
1863.  They  receive  money  on  deposit,  make  loans,  col- 
lect bills  of  exchange,  and  have  the  peculiar  privilege 
of  issuing  notes  that  are  not  of  legal  tender,  but  are  used 
as  money.  Each  national  bank  is  closely  under  the  con- 
trol of  the  government.  Its  books  are  carefully  in- 
spected, and  its  general  capital,  as  well  as  the  amount 
of  capital  that  it  must  have,  are  defined  by  Congress. 

Besides  the  national,  there  are  also  the  State  and  pri- 
vate banks.  The  State  banks  and  private  banks  fulfil 
the  same  functions  as  the  national  banks,  but  do  not 
issue  notes. 

The  American  banking  system  is  very  different  from 
that  in  England.  There  is  no  one  central  reserve  of 
capital,  and  it  is,  therefore,  less  easy  to  obtain,  on  the 
moment,  a  large  amount  of  money.  On  the  other  hand, 


Distribution  of  Wealth  261 

there  is  a  greater  amount  of  capital  distributed  through- 
out the  country,  and,  if  we  take  into  account  the  special 
needs  of  the  separate  State  systems,  perhaps  this  is  more 
convenient.  This  is  also  shown  by  the  varying  popular- 
ity of  the  national  and  State  banks.  In  some  States,  the 
latter  attain  far  greater  success  than  the  former.  And 
there  is  no  doubt  but  that  this  is  mainly  to  be  attributed 
to  greater  facility  and  greater  opportunity  of  local  in- 
spection, and  also  to  more  intimate  relations  between 
the  State  banks  and  local  needs. 

In  these  days  of  wide  markets  and  great  enterprises, 
the  banking  system  is  essential  for  all  parts  of  the  world. 
By  means  of  it  capital  is  stored  up  and  can  be  applied 
where  needed,  while  it  is  also  one  of  the  most  powerful 
buttresses  of  the  whole  system  of  credit.  Without  the 
banks,  there  would  be  a  great  deal  of  useless  hoarding 
of  wealth,  while  much  time  would  also  be  lost  in  making 
the  different  payments  connected  with  the  transaction  of 
business. 


OWING  to  the  great  complexity  of  modern  industry 
and  commerce,  as  well  as  to  the  increasing  power  and 
importance  of  wealth,  the  influence  of  government  in 
economics  became,  during  the  Modern  Period,  even 
more  powerful  than  during  the  Medieval  Period.  Each 
nation  required  more  money  for  carrying  on  the  ex- 
penses of  government,  and  at  the  same  time  incurred 
greater  responsibility  for  the  way  in  which  it  controlled 
the  whole  course  of  industry  and  commerce  in  the 
general  interests  of  all. 

By  the  tenth  century,  the  main  source  of  revenue  in 
each  State  was  taxation.  Sometimes  the  taxes  were  paid 
directly  from  the  people  to  the  officers  of  the  Crown; 
at  other  times,  as  was  the  case  in  France  before  the  time 
of  Henry  IV,  they  were  sold  for  a  net  sum  to  certain 
officials  who,  in  their  turn,  tried  to  get  what  they  could 
out  of  the  people.  Some  of  the  taxes,  again,  were  levied 
directly  on  the  people  who  were  destined  to  bear  the 
burden;  while  others,  again,  were  levied  only  indirectly, 
as,  for  example,  the  tariff  duties,  the  burden  of  which 
only  ultimately  fell  upon  the  consumer. 

In  most  of  the  European  countries,  the  imposition  of 
taxes  led  to  serious  conflicts,  and  often  to  much  hard- 
ship and  distress.  This  was  especially  the  case  in  Eng- 
land, where  the  unjust  taxation  of  the  Stuart  kings 
brought  about  the  conflict  between  king  and  Parliament, 
a  conflict  that  terminated  in  the  civil  war  and  the  over- 
throw and  destruction  of  Charles  I.  It  was  also  the 
assumption  of  the  principle  that  England  could  tax  her 


Government  Administration  of  Finances      263 

colonies  as  she  pleased,  that  was  one  of  the  causes  of 
the  American  Revolution. 

Even  apart  from  the  selfish  greed  of  kings,  there  were 
certainly  very  great  difficulties  connected  with  taxation. 
Numerous  wars  and  an  extensive  civil  service  had  neces- 
sitated an  enormous  number  of  taxes,  and  of  many  dif- 
ferent kinds.  There  were  taxes  levied  on  lands,  houses, 
horses,  and  carriages,  on  windows,  and,  for  some  years, 
on  the  regular  proceeds  of  a  person's  income ;  also,  there 
were  the  indirect  taxes  of  the  excise  and  customs.  By 
the  year  1815,  Sydney  Smith,  observing  the  extent  and 
multiplicity  of  taxation,  uses  the  following  descriptive 
words:  "The  school  boy  whips  his  taxed  top;  the  beard- 
less youth  manages  his  taxed  horse  with  a  taxed  bridle 
on  a  taxed  road;  and  the  dying  Englishman,  pouring  his 
medicine,  which  has  paid  seven  per  cent.,  in  a  spoon 
that  has  paid  fifteen  per  cent.,  flings  himself  upon  his 
chintz  bed  which  has  paid  twenty  per  cent.,  makes  his 
will  on  an  eight-pound  stamp,  and  expires  in  the  arms 
of  an  apothecary,  who  has  paid  a  license  of  one 
hundred  pounds  for  the  privilege  of  putting  him 
to  death.  His  whole  property  is  then  immediately 
taxed  up  ten  per  cent.  Besides  the  probate,  large 
fees  are  demanded  for  burying  him  in  the  chan- 
cel. His  virtues  are  handed  down  to  posterity  on 
taxed  marble,  and  he  will  then  be  gathered  to  his 
fathers  to  be  taxed  no  more."  Such  was  the  bewilder- 
ing multitude  of  taxes  that  had  come  into  existence  by 
the  beginning  of  the  nineteenth  century !  And  yet,  each 
one  of  these  taxes  involved  a  study  of  very  abstruse 
problems.  How  to  make  sure  that  the  people  shall  be 
taxed  according  to  their  means  and  that  the  rich  shall 
bear  their  proper  share  of  the  burden;  how  to  prevent 
taxation  from  impeding  industry  and  trade,  and  avoid 


264  Modern  Period 

destroying  the  very  sources  of  wealth,  and  how  to  pre- 
vent the  tax  from  being  rendered  abortive  by  the  in- 
competency  and  dishonesty  of  officials  or  taxpayers,  are 
questions  that  have  to  be  solved  at  the  introduction  of 
every  new  tax. 

It  is  not  surprising  that,  even  before  the  evil  reached 
its  climax,  there  should  have  appeared  certain  theories 
regarding  taxation,  and  among  the  first  to  elaborate 
any  principles  of  taxation  was  Turgot.  According  to 
him,  every  tax,  in  order  to  be  successful,  must  be  equal, 
certain,  and  must  be  collected  as  conveniently,  and  as 
economically,  as  possible. 

Every  tax  must  make  all  bear  the  same  propor- 
tionate amount  of  discomfort,  and  must  be  such 
that  none  can  escape  from  its  payment.  Also,  the  tax 
must  be  collected  just  at  the  time  that  is  most  convenient 
for  the  payer,  and  must  be  collected  with  least  possible 
expenditure.  Adam  Smith,  in  his  "Wealth  of  Nations," 
elaborated  these  principles  in  his  dissertation  on  taxa- 
tion, and  the  great  William  Pitt  strove  to  reduce  them 
to  practice.  He  mitigated  the  inequalities  of  the  land 
tax,  repealed  certain  taxes  that  had  been  levied  on  the 
necessities  of  life,  imposed  other  taxes  that  bore  more 
heavily  on  the  richer  classes,  and  tried  to  reform  and 
economize  the  whole  system  of  collecting  the  taxes.  To 
a  great  extent  he  was  successful.  But  although  circum- 
stances are  constantly  changing,  the  problem  of  taxation 
always  remains,  and  frequently  occasions  dangerous  fric- 
tion between  the  rulers  and  the  governed.  In  fact,  only 
a  few  years  after  these  reforms,  the  great  Continental 
war  brought  about  the  disastrous  state  of  affairs  de- 
scribed by  Sydney  Smith,  and  everywhere  throughout 
England  starvation  and  ever-deepening  discontent. 

In  France,  as  we  shall  see  in  a  following  chapter,  the 


Government  Administration  of  Finances      265 

burden  of  taxation  was  one  of  the  contributory  causes  of 
the  French  Revolution;  not  that  the  taxes  themselves 
were  so  enormous,  but  they  violated  the  canons  laid 
down  by  Turgot.  They  bore  unequally  on  different 
classes  of  society,  and  were  collected  by  inopportune 
methods. 

Besides  taxation,  another  source  of  revenue  to  the 
State  was  loans.  Already  in  the  twelfth  and  thirteenth 
centuries,  this  method  had  been  made  use  of  by  various 
European  States.  In  Venice  a  forced  loan  had  been 
made  by  the  people,  the  amount  collected  varying 
according  to  the  income  of  the  individual.  A  special 
bank  was  created  for  this  purpose,  and  annual  interest 
of  four  per  cent,  was  paid.  During  the  thirteenth  cen- 
tury, Frederick  borrowed  money  in  order  to  carry  on 
his  struggle  with  the  Pope,  while  in  France,  also,  St. 
Louis  had  adopted  the  same  expedient  in  order  to  find 
means  for  carrying  on  the  two  Crusades  that  ended  so 
disastrously.  Spain  was  exceptionally  notorious  for  its 
government  loans.  Philip  II  not  only  repudiated  his 
debts  toward  his  own  subjects  on  no  fewer  than  three 
distinct  occasions,  but  his  insolvency  was  the  main  cause 
of  the  failure  of  the  Bank  of  Genoa. 

In  England,  the  kings  had  frequent  recourse  to  loans, 
among  the  chief  offenders  in  this  particular  being 
Charles  I.  In  order  to  force  the  merchants  to  make 
the  required  loans,  he  would  resort  to  such  means  as  bil- 
leting soldiers  upon  them,  and  even  throwing  them  into 
prison. 

Although,  however,  forced  loans  were,  and  are,  un- 
constitutional, yet  voluntary  and  legal  loans  became  of 
frequent  occurrence,  and  are  now  an  admitted  part  of 
the  financial  system  of  almost  every  modern  nation.  In 
the  reign  of  William  III,  Montagu,  the  same  minister 


266  Modern  Period 

that  had  established  the  Bank  of  England,  also  began 
the  national  debt.  This  differed  from  the  previous 
loans,  inasmuch  as  it  was  voluntary,  permanent,  and 
placed  upon  a  sound  financial  basis.  At  first,  the  only 
security  given  by  the  government  was  the  tonnage  dues, 
but,  in  course  of  time,  other  securities  were  added,  in 
order  to  procure  further  loans,  while  government  an- 
nuities also  became  very  common.  In  1751,  the  whole 
system  of  the  national  debt  was  greatly  simplified.  All 
the  public  securities,  including  the  annuities,  were  con- 
solidated into  one  stock,  the  interest  being  fixed  at  the 
rate  of  three  per  cent. 

In  1786,  Pitt  attempted  to  reduce  the  national  debt 
by  setting  aside  a  sum  of  money  every  year,  and  using 
the  interest  of  that  money  for  the  purpose  of  reducing 
the  debt.  A  more  permanent  scheme  was  that  of  Mr. 
Goschen,  who  offered  to  the  holders  of  consols  either 
repayment  of  capital  at  its  full  value,  or  reduction  of 
the  interest  from  four  per  cent,  to  three  per  cent,  up 
to  the  year  1903,  and  afterwards  at  two  and  one-half 
per  cent.  The  second  alternative  was  generally  adopted 
with  the  result  of  saving  to  the  country  nearly  two  mil- 
lion pounds  a  year. 

The  same  system  of  government  loans  has  been  also 
adopted  in  other  countries.  At  the  present  day,  almost 
every  nation  has  its  own  debt  consolidated  into  stock, 
the  subscribers  to  which  are  found  in  all  parts  of  the 
world.  Variations  are  constantly  taking  place,  both  in 
the  value  of  the  shares  and  the  rate  of  interest  paid, 
and  these  variations  constitute  one  of  the  best  criteria 
of  the  condition  of  the  nation. 

Taxation  and  loans,  therefore,  are  the  usual  sources 
of  a  State's  revenue,  and  with  these  the  government  has 
to  carry  on  the  entire  expenses  of  the  administration. 


Government  Administration  of  Finances      267 

Waging  war,  building  fleets  and  fortifications,  undertak- 
ing many  works  of  public  utility,  establishing  an  effi- 
cient civil  service,  feeing  public  servants — all  this  is 
done  with  the  public  revenues. 

Besides  the  administration  by  the  State  of  its  own 
finances,  there  are  also  other  ways  in  which  the  State 
has  a  large  share  in  determining  the  fortunes  of  the 
commercial  world.  Already  it  has  been  pointed  out 
that  both  the  Mercantile  and  Physiocratic  schools  of 
economists  still  exist,  and  that,  both  in  theory  and  in 
practice,  the  government  interference,  inculcated  by  the 
former  school,  forms  a  marked  feature  of  the  Modern 
Period  of  history.  Some  of  the  ways  in  which  govern- 
ment regulates  trade  and  commerce  will  now  be  con- 
sidered in  detail.  The  first  which  will  claim  our  atten- 
tion is  that  of  granting  monopolies. 

A  monopoly  takes  place  when  one  kind  of  trade  or 
business  is  unlimited  by  competition.  Some  monopolies 
are  natural,  that  is  to  say,  are  created  by  nature,  as  when 
a  certain  kind  of  cereal  grows  only  in  a  certain  country. 
Other  monopolies  are  artificial,  and  these  happen  when- 
ever government,  by  taxes  or  other  restrictions,  limits 
the  power  of  manufacture  or  trade  only  to  certain  in- 
dividuals. Even  from  medieval  times,  monopolies  be- 
gan to  exist.  Thus,  in  Venice,  only  certain  fleets  were 
allowed  to  convey  commerce  to  certain  countries;  in 
France,  certain  trading  companies,  like  the  Jurandi  of 
Bordeaux,  had  obtained  from  their  lords  the  exclusive 
power  of  trading,  and  later  on  when  the  colonial  system 
was  established  each  country  tried  to  enjoy  the  mon- 
opoly with  its  colony.  England  also  was  not  behind  in 
the  system  of  monopolies.  Queen  Elizabeth,  for  exam- 
ple, gave  to  Lord  Essex  the  monopoly  of  sweet  wines; 
James  granted  a  monopoly  of  licensing  taverns  and  also 


268  Modern  Period 

houses,  and  of  making  gold  and  silver  thread;  while 
Charles  gave  to  a  particular  company  the  monopoly  of 
selling  soap. 

In  addition  to  these  monopolies  granted  to  private 
persons  or  firms,  the  nation  itself  tried  to  establish  its 
own  monopolies,  as  against  other  countries.  Perhaps 
the  most  famous  example  of  this  is  the  navigation  acts. 
The  first  navigation  act  was  passed  under  Richard  II. 
It  provided  that  no  merchandise  should  enter  or  leave 
England  except  in  English  ships.  Under  Cromwell, 
Dutch  vessels  were  forbidden  to  bring  to  England  any 
goods  save  those  produced  in  Holland.  Evidently,  this 
act  was  aimed  at  the  rival  Dutch  carrying  trade,  and  it 
was  one  of  the  main  causes  of  the  war  between  England 
and  Holland.  Further  navigation  acts  had  the  effect  of 
removing  all  danger  to  the  supremacy  of  the  English 
navy  from  Dutch  rivalry.  Navigation  acts  still  con- 
tinued until  1827,  at  which  time  they  caused  consider- 
able friction  between  England  and  the  United  States. 
Owing  to  retaliation  from  other  countries,  England,  for 
a  time,  abandoned  her  old  policy  and  adopted  the  more 
liberal  policy  of  reciprocity,  allowing  foreign  ships  to 
enter  her  harbors  in  return  for  similar  privileges  allowed 
to  the  English  ships.  The  navigation  acts,  however, 
were  not  finally  repealed  until  1849. 

At  present,  the  States  that  in  any  way  keep  up  the 
policy  of  the  navigation  acts  are  the  United  States  and 
Russia.  These  reserve  the  coasting  trade  for  their  own 
ships.  Nor  does  the  United  States  interpret  coasting 
trade  to  mean  trade  that  is  carried  on  merely  between 
one  part  and  another  inside  the  area  of  its  States ;  it  im- 
plies that  a  foreign  steamer  cannot  carry  goods  from 
the  Atlantic  coast  to  any  port  on  the  western  coast  via 
Cape  Horn.  Already  this  restriction  has  caused  dissatis- 


Government  Administration  of  Finances      269 

faction.  And  it  certainly  seems  hardly  equitable  that 
an  American  line  should  be  able  to  compete  with  an 
English  line  along  the  English  coast;  while  an  English 
line  could  not  do  the  same  by  competing  on  the  Ameri- 
can coast.  It  is  highly  probable  that,  in  defense  of  the 
present  declining  British  shipping  industry,  England  will 
be  forced  to  resort  again  to  the  policy  of  the  navigation 
acts,  in  order  to  secure  equitable  treatment  for  herself. 

Another  way  in  which  government  tries  to  foster  and 
regulate  trade  is  by  the  system  of  bounties.  A  bounty 
is  an  encouragement  given  by  the  State  to  some  par- 
ticular enterprise.  Very  often,  it  takes  the  form  of  a 
sum  of  money,  paid  to  the  manufacturer,  for  every 
quantity  of  goods  that  he  produces.  Such  stimulants  to 
industry  are  sometimes  highly  beneficial,  especially  in 
the  initial  stages  of  an  industry.  But,  if  continued  too 
long,  they  discourage  invention  and  the  spirit  of  enter- 
prise, and  thus  have  the  effect  of  a  deterrent,  rather  than 
of  a  stimulant. 

In  England,  bounties  seem  to  have  been  introduced 
about  the  year  1688.  A  bounty  of  five  shillings  per 
quarter  was  then  granted  on  the  export  of  English  corn. 
At  first,  the  effects  were  beneficial,  for  the  farmers  grew 
a  greater  quantity  of  corn,  and  thus  prices  were  lowered. 
But,  toward  the  end  of  the  eighteenth  century,  it  had  a 
most  mischievous  effect,  by  encouraging  the  exportation 
of  corn  just  at  the  time  when  it  was  most  needed  at 
home.  Bounties  were  also  granted  to  other  industries; 
thus,  in  1772,  a  bounty  of  eight  shillings  was  granted  on 
the  exportation  of  every  pound  weight  of  silks.  In 
1789,  a  bounty  was  given  to  the  manufacturers  of  linen. 

In  the  Continental  countries  of  Europe,  the  same 
system  was  adopted,  in  order  to  promote  native  industry 
and  commerce.  Colbert,  in  France,  greatly  promoted 


270  Modern  Period 

the  growth  of  French  manufactures  by  lavish  use  of 
bounties,  while  the  present  greatness  of  the  German 
manufacturing  industry  was  brought  about  by  the  same 
means. 

Yet  another  way  in  which  governments  tried  to 
foster  industry  was  by  the  imposition  of  tariff  duties. 
These  are  intended  to  have  the  effect  of  keeping  out 
foreign  competition  and  thus  protecting  the  native 
manufacturers  and  trades.  Much  discussion  is  still 
raised  regarding  the  merits  or  demerits  of  the  system  of 
Protection.  Some  maintain  that  it  fosters  the  national 
spirit,  makes  a  nation  more  independent,  and  gives  the 
manufacturer  a  surer  market.  Others  as  hotly  main- 
tain that  Protection  interferes  with  the  natural  laws  of 
trade,  that  it  fosters  monopolies  and  artificial  combina- 
tions, and  that  it  diverts  labor  to  non-productive 
channels. 

The  system  of  Protection  began  exceedingly  early. 
It  was  practised  even  by  the  Byzantine  Empire,  which 
raised  a  customs  barrier  that  mercilessly  barred  out  all 
foreign  competition.  In  Italy,  it  was  adopted  by  the 
lords  of  Lucca,  in  France  by  Colbert,  while  England, 
during  the  seventeenth  century,  became  then  as  much 
protectionist  as  she  now  is  in  favor  of  Free  Trade. 
About  the  same  time  that  bounties  were  given  for  the 
exportation  of  corn,  the  importation  of  corn  was  practi- 
cally prevented  by  highly  protective  duties.  Also,  in  the 
seventeenth  century,  there  were  imposed  many  duties  on 
foreign  lace,  embroidery,  and  wool  cords. 

At  the  present  time,  the  countries  that  mostly  adopt 
the  protective  system  are  Germany  and  the  United 
States.  In  the  latter  country,  the  duties  that  were  in- 
troduced after  the  War  of  1812  have  always  been  of 
a  very  protective  character.  After  the  Civil  War,  still 


Government  Administration  of  Finances      271 

heavier  protective  duties  were  imposed,  and  this  time 
not  only  upon  cotton  and  woolen  goods,  but  upon  al- 
most every  conceivable  article  that  could  be  imported. 
The  question  as  to  whether  the  tariff  shall  be  increased 
or  decreased  has  become  now  a  party  question  between 
the  Republicans  and  Democrats,  the  former  voting  for  a 
continuance  of  the  tariff,  and  the  latter  for  its  abolition, 
or  at  least  a  considerable  reduction. 

Another  field  of  commerce  in  which  the  benefits  of 
government  interference  are  very  warmly  discussed  is 
the  regulation  of  combinations,  whether  of  laborers  or 
of  employers. 

For  the  sake  of  bettering  their  material  condition,  as 
regards  hours  of  work,  wages,  and  conditions  of  employ- 
ment, laboring  men  have  frequently  combined  so  as  to 
form  societies.  In  speaking  of  the  journeymen  of  the 
Middle  Ages,  we  have  seen  that  among  them  there  was 
some  kind  of  combination  that  was  peculiarly  distaste- 
ful to  the  masters.  Not,  however,  until  the  eighteenth 
century  did  these  combinations  begin  to  attract  any  par- 
ticular attention.  At  first,  they  were  recognized  favor- 
ably by  the  law,  but  in  1800  they  were  declared  by  Act 
of  Parliament  illegal.  The  few  years  following  this 
date  may  be  considered  as  the  criminal  period  of  the 
history  of  trade-unions.  A  horror  of  plebeian  associa- 
tions of  any  kind,  the  dread  of  violence,  and  an  ignor- 
ance of  the  rights  of  labor,  were  the  root  causes  of  a 
long  series  of  persecutions. 

In  1824,  however,  mainly  owing  to  the  assiduity  of 
Francis  Peace,  the  act  was  repealed.  Labor-unions,  by 
this  repeal,  acquired  at  least  the  right  of  existence. 
From  this,  to  a  definitely  recognized  legal  status,  was 
a  comparatively  easy  step,  and,  in  1871,  combinations 
of  laborers  were  recognized  actively  by  the  law,  while, 


272  Modern  Period 

in  1876,  they  even  received  a  legal  organization,  to  the 
extent  of  being  able  to  hold  property,  and  sue  district 
treasurers  or  other  officials.  Something,  however,  still 
remains  to  their  complete  emancipation,  for  they  are 
still  under  a  cloud  of  legal  disfavor,  being  regarded  as 
associations  for  restraining  trade,  and  they  can  not  be 
prosecuted,  no  matter  how  harshly  they  may  treat  their 
members.  A  privilege  of  this  kind  is  not  likely  to  be 
felt  very  keenly  by  its  absence. 

Much  good  and  much  ill  has  been  said  of  the 
trade-unions,  and  perhaps  with  equal  truth.  While,  on 
the  one  hand,  they  are  often  guilty  of  injustice  and  vio- 
lence in  their  intimidation  of  non-unionists,  and  in  the 
perpetration  of  useless  strikes,  yet,  if  properly  man- 
aged and  conducted,  they  uphold  the  rights  of  labor  and 
increase  productiveness.  They  often  become  the  means 
of  protecting  the  laborers  from  the  tyranny  and  dishon- 
esty of  their  masters;  they  often  become  a  means  of 
educating  the  laborer  in  political  and  economic  prob- 
lems, and,  when  affairs  of  the  union  are  regulated,  as 
often  happens,  by  a  central  board  of  prudent  and  self- 
restrained  men,  strikes  will  not  be  allowed  through  mere 
caprice  or  idle  ill-will. 

In  America,  the  trade-unions  are  quite  as  powerful 
as  in  England.  They  are  comprised  under  two  distinct 
organizations,  namely,  the  American  Federation  of 
Labor  and  the  Knights  of  Labor.  Strikes  are  far  more 
numerous  and  not  so  well  regulated  as  in  England.  Oc- 
casions have  arisen,  especially  in  Chicago,  when  the 
Federal  troops  have  had  to  be  called  out,  in  order  to 
suppress  the  lawlessness  of  the  unionist  strikers.  But 
it  is  only  fair  to  remember  that  many  of  these  strikes  are 
the  work  of  recent  immigrants,  who  have  not  become 
thoroughly  naturalized,  and  who  have  not  yet  attained 


Government  Administration  of  Finances      273 

to  that  self-control  and  power  of  reflection  that  so  char- 
acterize the  American  workman.  So  far,  the  govern- 
ment in  the  United  States  has  adopted  a  policy  of  laissez- 
faire  toward  the  trade-unions,  except  when  they  over- 
step the  limits  of  the  laws  protecting  person  and 
property. 

From  what  has  been  said  in  the  last  few  pages,  it  will 
be  seen  that  the  attitude  of  government  toward  commer- 
cial questions  still  hovers  between  the  Mercantilist  and 
the  Physiocratic  systems,  and  that  it  is  still  often  a  mat- 
ter of  doubt  as  to  whether  government  interference  on 
this  or  that  particular  occasion  is  beneficial  or  injurious. 

Before  concluding  this  subject  it  would  be  desirable  to 
consider,  briefly,  one  important  though  indirect  way  in 
which  government  has  an  influence  on  the  distribution 
of  wealth,  namely,  the  poor-law  system  of  relief. 
During  the  Middle  Ages,  the  State,  as  we  have  seen, 
made  no  provision  for  the  poor.  Such  institutions  as 
the  monasteries  and  guilds  combined  with  private  muni- 
ficence to  relieve  the  condition  of  the  suffering  poor. 

When  society  began  to  enter  on  the  highly  complex 
conditions  of  the  Modern  Period,  this  system  proved  in- 
sufficient. The  conversion  of  arable  into  pasture  land, 
which  meant  the  deprivation  of  employment  to  thou- 
sands of  agricultural  laborers,  the  greater  fluctuations  in 
trade  entailed  by  wider  markets,  and  the  shiftless  con- 
dition of  many  soldiers,  returning  from  almost  chronic 
European  wars,  swelled  enormously  the  ranks  of  the 
destitute. 

Some  new  system  of  relief  had  to  be  devised  which, 
owing  to  the  greater  means  at  its  disposal,  and  to  a  more 
centralized  organization  than  that  of  private  institu- 
tions, might  deal  more  efficiently  with  the  ever-growing 
problem  of  poverty. 


274  Modern  Period 

The  result  was  a  general  movement,  both  in  England 
and  on  the  Continent,  both  in  the  Catholic  Church  and 
amongst  the  followers  of  Luther,  in  the  devotion  of 
State  relief.  In  this  movement,  the  Catholic  town  of 
Ypres  took  a  very  leading  part;  in  fact,  it  was  the  first 
town  to  adopt  anything  like  a  system  of  poor-law  relief. 
From  Ypres  the  movement  spread  all  over  the  Catholic 
world.  And,  what  gave  to  it  great  impetus,  was  the 
decision  of  the  theological  faculty  of  the  University  of 
Paris,  that  a  system  of  State  relief  was  lawful  and  ex- 
pedient. From  the  Continent,  the  movement  spread  to 
England,  chiefly  through  the  instrumentality  of  the  great 
Catholic  humanist,  Vives,  who  lived  for  some  time  at 
the  court  of  Henry  VIII,  and  was  very  often  consulted 
by  his  ministers.  His  influence  could,  indeed,  be  dis- 
tinctly seen  in  various  branches  of  the  English-poor-laws, 
especially  those  regarding  the  classification  of  the  poor. 

In  the  reign  of  Elizabeth  was  formulated  a  poor-law 
which  in  many  respects  was  remarkable  for  its  practical 
wisdom,  and  which  even  at  the  present  day  forms  the 
basis  of  the  present  poor-law  system  in  England  and 
especially  in  the  United  States.  It  says  that  two  or  three 
or  four  substantial  householders  shall,  under  the  seal 
of  two  or  more  justices  of  the  peace,  be  nominated 
yearly,  in  Easter  week,  and  that  these,  with  the  church 
wardens,  shall  be  overseers  of  the  poor.  These  shall, 
with  the  consent  of  the  justices,  take  order  from  time 
to  time  for  carrying  into  effect  the  several  provisions  of 
the  act  and  shall  raise  by  taxation,  weekly  or  otherwise, 
such  sums  of  money  as  they  think  fit  for  the  following 
purposes :  ( i )  to  set  to  work  the  children  of  the  poor 
and  the  adult  poor;  (2)  to  furnish  a  convenient  stock 
of  hemp  and  of  flax  to  provide  work  for  the  poor;  (3) 
to  relieve  the  sick,  the  blind,  and  the  feeble.  To  effect 


Government  Administration  of  Finances      275 

these  objects,  the  church  wardens  and  overseers  are  to 
meet  at  least  once  a  week  after  divine  service.  The 
act  then  provides  for  the  mutual  responsibility  of  rela- 
tions, extending  this  even  to  the  grandparents.  It  also 
provides  that  the  overseers  can,  with  the  consent  of  two 
justices,  apprentice  out  the  poor  children,  males  to  the 
age  of  twenty-four,  females  to  the  age  of  twenty. 
Finally,  the  justices  are  empowered  to  commit  to  houses 
of  correction  persons  refusing  to  work. 

We  may  now  consider  the  accidental  and  the  perma- 
nent elements  of  this  poor-law  code.  The  repressive 
element  of  it  has  almost  disappeared.  Perhaps  the 
only  remnant  of  it  still  in  existence  in  England  is  that 
begging,  by  the  English  law,  is  unlawful,  and  any  per- 
son caught  begging  can  be  handed  over  to  the  police. 
But  there  is  another  defect  in  the  Elizabethan  code 
which  ought  not  to  be  passed  over.  It  leaves  no  room 
for  private  charity.  It  is  perfectly  true  that  there  should 
be  some  general  principle  of  legislation  with  inflexible 
rules  which  should  apply  to  all  general  cases.  But  there 
are  always  exceptional  cases,  and  it  is  precisely  these 
with  which  private  charities  have  to  deal.  Hence, 
in  England,  they  have  St.  Vincent  de  Paul  societies,  Jew- 
ish lending  societies  and,  finally,  the  "Charity  Organiza- 
tion Society,"  which  closely  corresponds  to  the  "Associa- 
tion of  Charities/'  professing  to  supply  information 
regarding  applicants  for  relief.  But  we  must  now  con- 
sider the  permanent  elements  of  the  Elizabethan  code. 

The  first  permanent  element  is  the  distinctive  treat- 
ment meted  out  to  the  impotent  poor,  and  to  those  who 
are  sturdy  and  able  to  work.  For  the  blind,  sick,  and 
feeble,  habitations  had  to  be  erected  from  which  they 
were  not  to  stray,  and  in  which  they  had  to  do  such  work 
as  they  were  able  to  do,  while,  for  the  unruly  vagabond, 


276  Modern  Period 

there  was  the  house  of  correction.  Now  it  is  this  clause 
which  gave  rise,  for  the  first  time,  to  the  poorhouse, 
which  in  England  goes  by  the  name  of  workhouse. 
The  English  poorhouse,  however,  is  at  the  same  time 
a  house  of  correction.  Into  the  English  poorhouse  are 
admitted  the  sick,  the  feeble,  the  impotent  poor,  and  the 
able-bodied  who  are  able  to  work.  Any  one,  no  matter 
who  he  is,  can  be  admitted  to  the  workhouse.  As  a 
matter  of  fact,  however,  the  workhouse  is  quite  a  mis- 
nomer. It  is  a  lucus  a  non  lucendo.  In  most  of  the  Eng- 
lish workhouses  only  about  twenty  per  cent,  are  able  to 
work.  In  one  of  them  only  sixty  out  of  two  thousand 
are  able  to  work.  The  rest  are  either  morally  or  physi- 
cally incapacitated.  But  the  work  test  is  still  vigorously 
applied.  Inmates  are  bound  to  do  what  work  they  can, 
and  the  vagrants  who  demand  a  night's  lodging  are 
required  to  perform  in  return  two  or  three  hours  of 
hard  work  next  morning.  The  Elizabethan  legislators 
had  great  trust  in  this  work  test  as  a  means  for  dis- 
tinguishing between  the  genuine  and  fictitious  poor. 
They  said,  "If  a  man  is  really  in  want,  he  will  work 
for  the  relief  that  is  given  him."  This  principle  was 
also  the  basis  of  the  English  Poor-Law  Reform  of  1834, 
when  it  was  recognized  that  the  main  antidote  against 
the  evils  of  the  times  was  to  make  the  condition  of  the 
pauper  worse  than  that  of  the  lowest  paid  laborer.  In 
the  United  States,  in  Minnesota,  not  only  the  spirit, 
but  also  the  letter  of  the  Elizabethan  code  is  faithfully 
preserved,  for  there  are  the  poorhouses,  where  the  im- 
potent poor  are  received,  and,  apart  from  these,  are  the 
farms  upon  which  the  sturdy  can  be  set  to  work,  cor- 
responding to  the  Elizabethan  house  of  correction. 

Closely  connected  with  this  is  the  classification  of  the 
poor,    in   the    Elizabethan    code,    into    the    following 


Government  Administration  of  Finances      277 

classes:  children  of  the  poor,  the  adult  poor,  the  sick 
and  the  feeble,  and,  finally,  the  sturdy  vagabond.  But 
the  actual  carrying-out  of  this  classification  was  far  more 
effectual  in  the  Elizabethan  than  in  the  modern  English 
code.  At  the  present  time  all  the  different  classes  of 
paupers  are  confined  in  the  same  workhouse.  The 
workhouse  in  England  is  neither  a  school,  nor  a  prison, 
nor  a  penitentiary,  nor  an  infirmary,  but  a  curious  com- 
bination of  all  of  these  put  together.  Nearly  all  these 
persons  are  the  very  riff-raff  of  society,  persons  whose 
bad  character  has  usually  driven  them  within  the  walls, 
persons  deserving  both  of  blame  and  pity.  We  can 
easily  see,  therefore,  the  importance  of  making  a  com- 
plete and  thorough  classification  of  the  inmates.  But, 
even  in  the  large  workhouses,  this  classification  is  ex- 
tremely difficult,  for  they  all  meet  in  the  chapel  and  at 
meals,  and,  in  any  case,  it  is  hard  to  prevent  conversa- 
tion between  times. 

The  Elizabethan  code  provided  also  for  the  responsi- 
bility of  relations  for  the  support  of  each  other.  This 
still  holds  good  in  England,  and  in  many  places  of  the 
United  States,  though  in  the  United  States  there  is  a 
wise  provision  that  when  the  person  is  a  pauper  clearly 
through  his  own  fault,  in  such  a  case  his  relations  are 
free  from  this  responsibility. 

Another  permanent  element  is  the  enforced  payment 
of  rates.  The  act  of  Elizabeth  provides  that  those  who 
refuse  the  poor-rate  should  be  brought  before  two  jus- 
tices of  the  peace,  to  show  cause  of  refusal,  and  if  they 
still  remain  obdurate  they  should  then  be  imprisoned. 
It  is  almost  amusing  to  see  how  slowly  and  with  what 
extreme  reluctance  the  poor-rate  was  made  compulsory 
in  England.  It  was  evident  that  the  ratepayers  made 
a  considerable  opposition.  Under  Henry  VIII  volun- 


278  Modern  Period 

tary  alms  were  to  be  collected  among  the  faithful. 
These  were  evidently  rather  slow  in  coming  in,  and  a 
further  statute  provides  that  the  obdurate  ratepayer 
should  be  gently  admonished  by  his  pastor  and  church 
wardens.  This  was  evidently  still  ineffectual,  and  un- 
der Philip  and  Mary  the  obstinate  ratepayer  was  not 
only  admonished  by  the  pastor  and  church  wardens, 
but  was  brought  before  the  bishop,  as  well,  to  receive 
admonition.  Even  the  bishop,  however,  proved  inef- 
fectual, and  the  Elizabethan  poor-law  code  provides 
that  any  refusing  to  pay  the  rate  should  be  imprisoned. 
The  collectors  of  this  rate  were  the  overseers,  and  this 
is  one  of  the  few  remaining  powers  still  in  the  hands  of 
the  overseers.  The  overseer  in  the  Elizabethan  code 
had  many  powers.  He  collected  the  weekly  rates  with 
the  consent  of  the  justices ;  he  was  charged  with  provid- 
ing work  for  the  children  and  the  adults;  in  a  word, 
he  was  entrusted  with  the  general  supervision  of  the  in- 
mates of  poorhouses.  Later  on,  in  the  times  of  the 
Stuarts,  his  sphere  of  action  was  still  further  enlarged, 
and  he  was  entrusted  with  the  task  of  supervising,  not 
only  the  poor  actually  in  the  poorhouse,  but  the  laborers 
without  it.  Later  on,  however,  his  powers  were  cur- 
tailed. In  the  year  1691,  it  was  complained  that  over- 
seers were  sometimes  indiscriminate  in  their  giving  re- 
lief, and  a  list  of  paupers  had  to  be  drawn  up,  outside 
of  which  none  should  receive  relief,  except  by  the  au- 
thority of  the  justices  of  the  peace.  The  position  of  the 
overseer  was  still  further  degraded  by  the  law  which 
decreed  that  if  any  overseer  refused  relief,  the  appli- 
cant could  arraign  him  before  the  justices  of  the  peace 
to  show  cause  of  his  refusal.  By  the  celebrated  Gilbert's 
Act,  which  provided  for  the  incorporation  of  unions, 
nearly  all  the  previous  powers  of  the  overseer  were  en- 


Government  Administration  of  Finances      279 

trusted  to  boards  of  guardians,  and  at  present  the  only 
duties  of  the  English  overseer  are  to  collect  the  rates  and 
grant  relief  in  certain  emergencies.  Here,  again,  the 
poor-law  code  of  the  United  States  adheres  much  more 
closely  to  the  Elizabethan  code,  for  the  overseer  still 
retains  many  of  the  general  powers  of  supervision,  such 
as  were  enjoyed  by  his  ancestor  in  the  Elizabethan  code. 

The  last  permanent  element  we  have  to  consider  is 
that  of  settlement.  The  Fourteenth  Statute  of  Eliza- 
beth provides  that  the  justices  of  the  peace  must  make 
search  for  all  the  poor  who  have  been  born,  or  who 
have  lived  in  their  parish  three  years.  This  condition 
of  poor  relief  is  practically  still  in  existence.  Even  at 
the  present  time,  the  main  title  that  a  man  has  to  relief 
from  the  union  is  the  fact  of  settlement,  that  he  was  born 
there,  or  that  he  lived  there  dependent  upon  his  pa- 
rents, or  that  he  has  lived  there  three  years.  But  in  Eng- 
land, this  element  of  settlement  is  complicated  by  the  law 
of  irremovability,  by  which,  if  a  person  has  lived  in  a 
parish  one  year,  or  if  he  be  only  temporarily  sick,  or  a 
foreigner,  then  he  can  not  be  removed. 

Such,  very  briefly,  are  the  permanent  elements  of  the 
Elizabethan  code.  True,  it  has  many  defects,  but  we 
must  remember  that  it  was  a  tentative  measure,  and  that 
the  evils  that  it  had  to  cope  with  were  complicated  by 
previous  narrow-minded  legislators.  On  the  whole,  the 
Elizabethan  code  was  framed  in  a  broad  and  tolerant 
spirit,  and  it  certainly  recognized  that  great  principle, 
which  was  the  chief  basis  of  the  reform  of  1834,  that 
the  condition  of  the  able-bodied  pauper  should  be  made 
less  desirable  than  that  of  the  lowest  class  workingman. 
It  discouraged  universal  almsgiving,  which,  without 
careful  discrimination  and  wide  circumstantial  knowl- 
edge, often  does  more  harm  than  good,  and  its  object 


280  Modern  Period 

was  to  secure  to  the  workingman  that  moral  capital 
which  is  so  important  for  success  in  life,  the  capital  of 
self-dependence,  the  spirit  of  initiative.  Perhaps  it  is 
true  to  say  that  the  Elizabethan  code  is  almost  as  re- 
markable for  what  it  omits  as  for  what  it  asserts.  It 
says  nothing  about  outdoor  relief,  about  relieving  the 
poor  in  their  homes.  Some  make  the  objection  that  the 
abolition  of  State  outdoor  relief  implies  one  of  two 
things:  either  starving  the  poor  man,  or  forcing  him 
into  the  workhouse,  which  means,  in  many  cases,  break- 
ing up  of  home  and  the  violation  of  family  ties.  But 
constant  experience  shows  that,  when  outdoor  relief  is 
repeatedly  refused,  the  number  of  those  going  into  the 
workhouse  diminishes  also,  and  that,  in  point  of  fact, 
outdoor  relief  is  a  preparatory  school,  or  initiation, 
into  pauperism.  Outdoor  relief,  with  the  deadening 
expectations  it  raises,  is  far  crueler,  far  sterner,  than 
the  policy  which  refuses  to  tempt  people  away  from 
their  own  true  strength.  It  is,  perhaps,  not  too  much 
to  say  that  of  all  the  achievements,  military  and  civil, 
of  Elizabeth,  one  of  her  greatest,  and  one  that  did 
most  good  for  humanity,  was  the  construction  of  a  poor- 
law  which  was  practical  and  elastic. 

By  thus  relieving  the  destitute,  there  is  no  doubt 
that  the  State  is  grappling  with  a  very  serious  difficulty, 
which  arises  from  the  unequal  distribution  of  wealth. 
In  the  Middle  Ages,  extreme  poverty  was  rare,  owing  to 
the  greater  diffusion  and  stability  of  wealth.  But  condi- 
tions are  now  altered.  Capital  tends  to  accumulate  in  the 
hands  of  a  few,  competition  is  keener,  and  many,  through 
no  fault  of  their  own,  have  to  fall  out  of  the  race.  The 
problem  of  poverty,  therefore,  has  to  be  dealt  with,  in 
order  to  avoid  the  same  dangerous  discontent  and  revo- 
lutions that  threatened  the  later  Roman  Republic. 


CHAPTER  VI 

INFLUENCE    OF    ECONOMICS    ON    WARS 
AND   TREATIES 

DURING  the  sixteenth  and  seventeenth  centuries, 
the  principles  of  the  Mercantile  school  of  economics 
generally  prevailed  throughout  Europe.  Statesmen  re- 
garded the  possession  of  gold  and  silver  as  the  principal 
object  of  their  ambition,  and  since  these  commodities 
are  limited  in  quantity,  the  natural  results  of  such  a 
policy  were  constant  frictions  and  frequent  endeavors, 
both  by  commercial  and  military  wars,  to  destroy  the 
wealth  of  other  nations  but  one's  own. 

Most  of  the  wars  during  these  two  centuries  took 
their  origin  from  economic  causes.  Monopoly  of  the 
shipping  trade,  monopoly  of  commerce  with  the  newly 
discovered  colonies — these  were,  at  first,  the  real  causes 
of  contention.  Indeed,  the  religious  wars  of  Eu- 
rope, like  the  Thirty  Years'  War,  and  the  war  in  the 
Spanish  Netherlands,  had  not  ended  before  the  eco- 
nomic element  seriously  intervened,  and  began  to  sup- 
plant the  religious  element  as  an  element  of  strife. 

First,  there  was  the  rivalry  between  England  and 
Spain  during  the  reign  of  Elizabeth.  Certainly,  there 
were,  as  well,  religious  and  political  causes.  The  strong 
feeling  between  Protestants  and  Catholics,  the  execu- 
tion of  Mary  Stuart,  and  the  necessity  of  preserving  the 
balance  of  power  against  Spain,  were  strong  causes. 
But,  even  after  the  removal  of  these,  the  wars  still  con- 
tinued and  were  plainly  fought  out  on  economic  grounds. 
When  Cromwell  came  to  power,  he  openly  avowed  that 
trade  with  the  Spanish  colonies  was  the  object  of  conten- 


282  Modern  Period 

tion.  For  this  purpose,  he  formed  an  alliance,  first  with 
Holland,  and  then  with  France.  During  the  alliance 
with  Holland,  Penn  Venables  made  an  attack  on  the 
Spanish  colonies  in  the  West  Indies.  The  attack  was 
foiled,  but,  by  way  of  compensation,  Penn  afterwards 
succeeded  in  taking  the  Island  of  Jamaica,  while  Blake 
completely  destroyed  the  Spanish  fleet  at  Teneriffe  in  the 
Canary  Islands.  During  the  alliance  with  France,  Mar- 
dyke,  in  the  Spanish  Netherlands,  was  captured,  and  Dun- 
kirk was  forced  to  surrender.  Nor  was  the  war  con- 
fined to  military  tactics  alone.  Its  commercial  aspect  was 
still  further  emphasized  by  the  imposition,  on  the  part  of 
England,  of  protective  duties,  hoping  thereby  to  crush 
the  productiveness  of  Spanish  industry  in  the  colonies. 

Even  when  the  political  rivalry  of  Spain  had  de- 
clined, her  commercial  prosperity  in  the  colonies  oc- 
casioned wars,  even  as  late  as  the  middle  of  the  eigh- 
teenth century.  It  was  England's  violation  of  the  com- 
mercial clauses  of  the  Treaty  of  Utrecht,  and  the  harsh- 
ness of  the  Spanish  custom  house  officers,  which  oc- 
casioned the  Spanish  and  English  war  during  Walpole's 
administration.  At  the  remonstrances  of  the  English 
merchants  and  their  supporters,  he  unwillingly  began 
operations  against  Spain.  The  war,  however,  was  car- 
ried out  in  a  very  half-hearted  manner.  The  dramatic 
capture  of  Porto  Bello  by  the  six  English  ships  was  more 
than  offset  by  the  disastrous  failure  to  capture  Cartha- 
gena  in  Spanish  South  America. 

Close  on  the  heels  of  trade  rivalry  between  England 
and  Spain,  came  also  the  commercial  rivalry  between 
England  and  Holland.  This  also  manifested  itself  dur- 
ing the  time  of  Cromwell.  The  navigation  acts  under 
Cromwell,  which  limited  the  exportation  and  importa- 
tion of  goods  between  England  and  Asia,  Africa,  and 


Influence  of  Economics  on  Wars  and  Treaties      283 

America,  to  English  ships,  manned  by  English  crews; 
the  act  of  1661,  under  Charles  II,  which  furthermore 
insisted  that  these  ships  must  be  owned  by  Englishmen, 
were  aimed  chiefly  at  Holland. 

The  navigation  acts  certainly  accomplished  their  pur- 
pose. Holland  suffered  severely  in  her  trade,  and  was 
goaded  into  a  declaration  of  war.  In  Cromwell's  time, 
the  great  naval  duel  was  fought  between  Admiral 
Tromp,  on  the  side  of  the  Dutch,  and  Admiral  Blake, 
on  the  side  of  the  English.  While  Tromp  won  the  bat- 
tle of  Dungeness,  Blake  won  the  still  more  decisive  bat- 
tle off  Portland. 

After  peace  had  been  temporarily  restored,  war  again 
broke  out  after  the  navigation  act  of  Charles  II. 
This  time  the  war  was  more  general.  All  along  the 
Gold  Coast  of  Africa  and  in  North  America,  there  arose 
hostilities  between  English  and  Dutch  merchants.  In 
English  waters,  the  English  fleet  was  not  so  successful  as 
during  Cromwell's  time.  Blake's  place  had  been  taken 
by  the  less  efficient  Rupert  and  Albemarle,  while  the 
Dutch  Admiral  Ruyter  was  nearly  equal  to  Tromp. 
At  first,  the  number  of  successes  on  either  side  were 
about  evenly  balanced.  But  the  carelessness  of  the  Eng- 
lish commanders  who,  imagining  that  the  war  was  over, 
laid  up  the  war  ships,  allowed  the  Dutch  to  sail  up  the 
Thames,  and  to  burn  the  English  shipping. 

The  Peace  of  Breda  was  then  signed  (1667). 
French  jealousy,  however,  of  the  Dutch  trade  renewed 
hostilities.  In  1677,  England  joined  France,  under 
Louis  XIV,  in  the  celebrated  attack  on  Holland.  Only 
the  intrepid  defense  made  by  the  Dutch,  who  flooded 
their  provinces  against  the  invader,  and  the  political 
sagacity  of  William  of  Orange,  saved  Holland  from 
destruction.  Louis  XIV  was  compelled  to  withdraw  his 


284  Modern  Period 

troops.  But  Dutch  trade  afterwards  became  perma- 
nently crippled,  and  her  place  in  the  competition  for  the 
monopoly  of  trade  and  commerce  was  taken  by  France. 

It  was  the  political  supremacy  of  France,  and  her 
aggressiveness,  that  actually  began  the  great  wars  be- 
tween Louis  XIV  and  the  greater  part  of  Europe. 
His  early  wars  were  prompted  by  the  desire  to 
strengthen  the  weak  frontiers  of  France,  but  his  later 
wars  were  the  result  of  pure  aggressiveness.  His  in- 
vasion of  the  Palatinate,  his  arbitrary  seizure  of  certain 
territories  in  Alsace,  his  taking  possession  of  the  crown 
of  Spain  in  behalf  of  his  grandson,  his  filling  the  fron- 
tier towns  in  the  Spanish  Netherlands  with  French  gar- 
risons, were  all  arbitrary  acts  that  necessitated  a  war  of 
self-defense,  and  brought  on  the  Grand  Alliance  be- 
tween England,  Spain,  Holland,  and  the  German  Em- 
pire against  France,  and  the  great  War  of  the  Spanish 
Succession. 

And  yet,  even  here,  there  was  present  an  economic 
element.  Who  can  doubt  but  that  the  union  of  Spain 
and  France,  under  one  head,  would  have  been  vitally 
prejudicial,  not  only  to. the  political  balance  of  power, 
but  also  to  the  commercial  prosperity  and  existence  of 
England?  In  fact,  one  of  the  very  clauses  of  the  Treaty 
of  the  Grand  Alliance  was  the  protection  of  the  threat- 
ened English  commerce;  moreover,  one  of  the  means 
by  which  England  tried  to  strike  at  France  was  by  an 
understanding  with  Portugal  to  give  up  the  importation 
of  French  wines,  and,  instead,  to  allow  the  importation 
of  Portuguese  wines.  Portugal,  on  her  side,  was  to 
allow  a  free  market  to  the  introduction  of  English 
woolen  goods.  It  was  evidently  a  case  of  trying  to  deal 
a  blow  at  France  by  means  of  a  reciprocal  monopoly, 
the  first  of  its  kind. 


Influence  .of  Economics  on  Wars  and  Treaties     285 

When  the  war  was  concluded  in  favor  of  the  Grand 
Alliance,  its  commercial  side  was  again  sufficiently 
demonstrated  by  the  clauses  of  the  Treaty  of  Utrecht, 
which  guaranteed  for  a  time  favorable  trade  concessions 
between  England  and  France,  and  to  the  former  country 
the  peaceful  and  profitable  cession  of  the  colonies  of 
Nova  Scotia  and  Newfoundland. 

Gradually,  however,  the  real  issue  at  stake  between 
England  and  France  became  more  and  more  apparent. 
When  the  attempt  to  divide  the  Austrian  dominions  of 
Maria  Theresa  brought  on  the  War  of  the  Austrian 
Succession,  England  entered  the  struggle,  and  during  its 
course  attempted  again  to  deal  a  blow  at  French  com- 
merce. The  termination  of  the  war,  also,  revealed 
clearly  the  undercurrent  of  the  clash  of  economic  inter- 
ests. Cape  Breton  was  lost  to  the  English,  while  Mad- 
ras was  recovered  from  the  French. 

This  growing  competition  between  England  and 
France  for  the  possession  of  colonial  settlements  beyond 
the  seas  and  the  wider  market  that  they  would  thus  bring 
was  brought  to  a  head  during  the  Seven  Years'  War. 
While  on  the  battlefields  of  Europe  the  issues  were 
chiefly  political,  in  other  parts  of  the  world  the  issues 
were  mainly  economic.  But  even  the  European  strife 
was  not  altogether  devoid  of  the  economic  element.  Be- 
sides the  hatred  of  Austria  aroused  toward  Prussia  by 
the  latter's  seizure  of  Silesia,  the  commercial  prosperity 
of  the  Netherlands  was  a  very  serious  cause  of  conten- 
tion between  Austria  and  Prussia.  Austria  wished  to 
revive  the  commerce  of  the  Netherlands,  and  for  this 
purpose  to  promote  the  formation  of  an  important  com- 
mercial company  at  Ostend;  Prussia,  on  the  other  hand, 
still  insisted  on  the  closing  of  the  River  Scheldt,  so  that 
the  rival  port  of  Antwerp  should  not  injure  Dutch  trade. 


286  Modern  Period 

While  the  question  of  the  economic  prosperity  of  the 
Netherlands  formed  one  of  the  important  causes  of  the 
Seven  Years'  War,  the  quarrel  between  England  and 
France  arose  from  economic  questions  of  a  vital 
and  worldwide  nature.  The  prize  in  dispute  was  the 
possession  of  the  colonies  in  America  and  India,  and  the 
enormous  trade  and  wealth  that  would  result  from  the 
possession  of  those  colonies. 

During  the  early  part  of  the  fourteenth  century,  the 
French  had  adopted  the  avowed  policy  of  confining 
the  English  to  the  seaboard  of  the  Atlantic  coast,  and 
of  establishing,  by  means  of  the  great  waterways,  com- 
plete communication  between  their  Canadian  possessions 
and  those  that  were  in  Louisiana.  The  great  valleys  of 
the  Allegheny  and  Tennessee  were  brought  under  their 
control,  and,  altogether,  the  French,  aided  by  their 
strong  government  at  home,  were  obviously  gaining 
over  their  English  rivals. 

In  1754  began  the  real  struggle.  General  Braddock 
was  sent  over  from  England,  in  order  to  destroy  the 
French  forts  at  Niagara,  and  the  other  forts  as  far  south 
as  Wabash.  Braddock's  first  move  was  against  Fort 
Duquesne  (Pittsburg).  He  soon  showed  himself  thor- 
oughly inexperienced  in  guerrilla  warfare.  Allowing  his 
army  to  fall  into  an  ambuscade  of  Indians  in  the  employ 
of  the  French,  he  himself  was  mortally  wounded  and 
his  army  routed  in  1755. 

These  disasters  were,  however,  retrieved  in  1758. 
The  great  English  statesman,  Pitt  the  Elder,  was  then 
at  the  head  of  affairs,  and  none  knew  better  than  he 
how  to  choose  capable  officers.  General  Wolfe  was  sent 
out  to  take  command  of  the  English  army.  His  ability 
was  undoubted,  and  it  was  given  a  favorable  opportun- 
ity by  the  exhausted  condition  of  Canada.  Montcalm, 


Influence  of  Economics  on  Wars  and  Treaties      287 

the  French  commander,  was  besieged  in  Quebec.  Ap- 
parently, the  place  was  impregnable,  but  the  English, 
by  scaling  at  dead  of  night  the  steep  cliffs  of  the  north 
bank  of  the  St.  Lawrence,  surprised  the  French  sentinels, 
and  completely  outflanked  and  vanquished  the  French 
army.  The  capture  of  Quebec  was  the  signal  for  the 
general  overthrow  of  French  rule  in  Canada.  One 
after  another,  Ticonderoga,  Niagara,  and  Montreal  be- 
came an  easy  prey.  Canada  became  British,  and  the 
Middle  States  of  America  were  also  saved  from  French 
domination. 

The  results  were  far-reaching.  The  Teutonic,  instead 
of  the  Latin  civilization,  prevailed  in  the  American 
States.  Literature,  national  law  and  jurisprudence,  na- 
tional character,  and  even  the  form  of  religion  of  these 
States  were  determined  by  the  English  successful  resist- 
ance against  the  French.  England  at  the  same  time 
became  enriched  by  its  permanent  possession  of  a  colony 
remarkable  for  many  valuable  productions,  and  offering 
to  English  merchants  and  traders  a  most  valuable  market. 

Just  about  the  same  time  as  the  Canadian  war,  the 
English  and  French  were  also  fighting  out  their  colonial 
quarrel  in  quite  another  part  of  the  world,  namely,  in 
the  great  Empire  of  India. 

Up  to  a  few  years  of  this  time,  India  had  been  ruled 
by  a  succession  of  emperors  belonging  to  the  Mogul 
dynasty.  The  founder  of  this  dynasty  was  popularly 
supposed  to  have  been  Baber,  a  potentate  who  flour- 
ished in  the  sixteenth  century,  though  Baber  himself 
claimed  descent  from  Timon  the  Tartar,  who  lived  in 
the  fourteenth  century. 

For  a  long  time  the  rule  of  the  Moguls  was  highly 
centralized,  and  extended  over  all  the  Indian  provinces. 
But  a  process  of  disintegration  had  already  begun.  The 


288  Modern  Period 

different  princes  of  the  provinces  began  to  assert  their 
independence,  and  the  authority  of  the  empire  became 
almost  as  shadowy  and  unsubstantial  as  that  of  the  later 
Carolingian  monarchs. 

Besides  these  internal  elements  of  disintegration, 
there  were  also  the  various  foreign  trading  settlements, 
of  which  we  have  already  spoken  in  a  previous  chapter. 
These  were  chiefly  along  the  coasts.  Thus,  on  the  west- 
ern, or  Malabar  coast,  the  Portuguese  had  established 
the  colony  of  Goa;  the  French  had  established  them- 
selves at  Hooghly  and  Pondicherry ;  finally,  the  English 
were  in  possession  of  the  village  of  Bombay,  on  the  ex- 
treme northwest  coast,  of  Fort  St.  George  in  Madras, 
and  of  a  settlement  at  Calcutta,  on  the  extreme  north- 
eastern coast. 

The  French,  up  to  1750,  seemed  to  have  made  the 
most  progress.  The  East  Indian  Company,  that  had 
been  formed  under  Richelieu,  had  received  special  pat- 
ronage under  Colbert,  while  Dupleix,  the  governor  of 
Pondicherry,  was  an  able  man,  and  full  of  ambition  to 
promote  his  country's  interests. 

Opportunity  to  advance  French  influence  presented 
itself  in  the  continual  petty  disputes  and  fights  that  were 
going  on  between  the  native  tribes.  The  French  backed 
up  one  tribe  against  the  other,  and  by  drilling  the  na- 
tives, whom  they  supplied  with  instruments  of  modern 
warfare,  they  hoped  to  secure  by  this  means  complete 
ascendency  in  India.  This  policy,  however,  stirred  the 
English  into  a  course  of  vigorous  action.  They 
espoused  the  cause  of  the  tribes  that  were  being  attacked 
by  the  French.  At  first,  the  campaign  went  against  the 
English.  Their  siege  of  Pondicherry  failed,  and  even 
Trichinopoli,  in  Madras,  was  placed  in  imminent  dan- 
ger. But  Robert  Clive,  a  dashing  young  soldier,  saved 


Influence  of  Economics  on  Wars  and  Treaties      289 

the  situation.  Abandoning  a  purely  defensive  method 
of  warfare,  he  assumed  the  aggressive.  In  1717,  he 
took  the  city  of  Arcot,  in  the  Carnatic,  and  held  it  suc- 
cessfully against  the  most  vigorous  assaults  from  the 
French.  Almost  at  once,  the  power  of  the  French  be- 
gan to  decline.  Dupleix  had  to  retire  to  France  in  dis- 
grace, and  the  whole  of  the  Carnatic  became  settled 
under  English  rule. 

The  next  step  in  the  establishment  of  an  English  em- 
pire in  India  was  the  conquest  of  Bengal.  Suraja  Dow- 
lah  was  then  the  nabob  of  Bengal.  He  was  a  man  of 
savage  and  fiendish  cruelty,  but  it  was  greed,  more  than 
anything  else,  that  led  him  to  attack  the  English  settle- 
ment at  Fort  William  (Calcutta)  in  1756.  He  suc- 
ceeded, and  in  the  hour  of  his  triumph  one  hundred  and 
forty-six  prisoners  were  confined  in  a  small  room  only 
twenty  feet  square,  and  with  only  two  small  gratings  for 
ventilation.  For  only  one  night  were  the  prisoners  con- 
fined in  this  den,  but  the  heat  of  an  Indian  summer  did 
its  work,  and  in  the  morning  only  twenty-three  persons 
survived. 

This  massacre  roused  Clive  to  put  forth  his  best  ener- 
gies. Marching  into  the  heart  of  Bengal,  he  inflicted 
upon  the  enemy  an  overwhelming  defeat  at  the  battle 
of  Plassey  (1757).  This  victory  placed  the  English  in 
possession  of  Bengal,  and,  together  with  the  victory  at 
Wandewash  in  southern  India  by  Colonel  Coote,  prac- 
tically determined  that  the  English,  and  not  the  French, 
were  to  be  the  rulers  of  India. 

Such,  indeed,  was  the  real  significance  of  the  Seven 
Years'  War.  It  settled  the  outstanding  colonial  ques- 
tion between  England  and  France.  The  occupation  of 
America  by  the  Teutonic  race,  and  the  foundation  of  the 
great  Empire  of  India,  are  events  of  stupendous,  world- 


290  Modern  Period 

wide  importance,  and  they  were  brought  about  by  the 
struggle  between  England  and  France  for  the  possession 
of  the  widest  markets. 

Even  when  the  Seven  Years'  War  had  been  termi- 
nated by  the  Treaty  of  Paris,  hostilities  were  again  re- 
newed, about  fifty  years  afterwards,  between  France 
and  England,  and  again  also  the  economic  element 
played  a  part,  though  not  so  important  as  during  the 
Seven  Years'  War. 

In  the  great  wars  that  Napoleon  was  waging  against 
the  civilized  world,  there  was  one  power  that  was  al- 
ways the  object  of  his  peculiar  dread,  and  whose  de- 
struction was  uppermost  in  his  thoughts.  That  power 
was  England.  He  instinctively  felt  that  England's  des- 
tiny, in  the  present,  as  in  the  past,  was  to  preserve  the 
balance  of  power  in  Europe  against  any  nation  that  was 
becoming  too  formidable.  First,  Philip  II,  then  Louis 
XIV,  of  France,  had  been  humbled  by  England,  and 
he  felt  sure  England  would  again  follow  the  same 
policy  which  was  so  subservient  to  her  best  interests. 
Moreover,  his  sneering  remark,  that  England  was  a 
nation  of  shopkeepers,  clearly  showed  that  her  commer- 
cial greatness  was  still  an  object  of  jealousy. 

In  1806,  Napoleon  was  still  on  the  floodtide  of  suc- 
cess. The  battles  of  Marengo,  Hohenlinden,  Ulm, 
Austerlitz,  and  Jena  had  made  him  victor  in  Italy,  Aus- 
tria, and  Prussia.  But  one  nation  had  successfully  de- 
fied his  power,  and  that  one  nation  was  England.  At 
the  naval  battle  of  Trafalgar,  the  French  fleet  had  re- 
ceived a  humiliating  and  decisive  reverse.  This  was 
an  injury  and  an  affront  that  Napoleon  was  not  likely 
to  forget. 

In  1806,  therefore,  he  issued  the  celebrated  Berlin 
Decrees.  These  decrees  placed  England  in  a  state  of 


Influence  of  Economics  on  Wars  and  Treaties     291 

blockade.  They  forbade  all  commerce,  and  any  kind  of 
communication,  between  England  and  any  of  his  depen- 
dents and  allies,  and  ordered  the  imprisonment  of  all 
English  subjects  found  in  countries  occupied  by  French 
troops,  and  the  seizure  of  English  property  and  mer- 
chandise wherever  they  could  be  found.  These  decrees 
aimed  at  the  complete  isolation  of  England  from  the 
rest  of  Europe.  Such  an  attempt  might  seem  at  first  ab- 
surdly impracticable,  but  it  must  be  remembered  that 
Napoleon  at  that  time  was  military  master  of  Europe, 
and  that  the  secret  treaties  of  Tilsit,  signed  shortly  after- 
wards, gave  him  the  effective  control  over  the  ports  of 
Prussia  and  Russia. 

To  these  decrees  England  was  forced  to  reply  by  a 
counterblow.  In  1807,  she  issued  the  celebrated  Orders 
in  Council,  which  curtailed  the  rights  of  neutrals,  and 
forbade  all  intercourse  with  any  port  occupied  by  the 
French. 

Napoleon  retaliated  by  the  still  more  severe  Decrees 
of  Milan,  which  formulated  his  continental  system  into 
a  code  of  law.  For  years  no  European  port  dared 
openly  to  admit  an  English  vessel  within  its  waters,  un- 
der pain  of  incurring  Napoleon's  severest  displeasure. 
He  even  required  neutrals  to  carry  a  license  to  trade. 
One  instance  of  Napoleon's  severity,  in  this  regard,  we 
find  in  his  treatment  of  Pope  Pius  VII.  The  refusal  of 
the  Pope  to  expel  English  subjects  from  his  States  and 
to  prevent  English  ships  from  entering  Papal  harbors, 
was  the  excuse  given  for  Napoleon's  active  hostilities 
against  the  Holy  Father. 

England's  assertion  of  her  Orders  in  Council  also 
caused  a  great  deal  of  distress  and  annoyance.  Her 
ships  not  only  effectively  blocked  the  French  ports,  but 
successfully  carried  off  as  prizes  many  of  the  neutral 


292  Modern  Period 

ships.  Incidentally,  the  United  States  suffered  con- 
siderably in  her  trade  and  commerce,  and  the  strong  ten- 
sion that  resulted  between  England  and  the  United 
States  also  damaged  even  the  English  trade  and  manu- 
factures. This  was  especially  the  case  in  regard  to  the 
spinning  industries  in  Lancashire,  that  were  so  depen- 
dent upon  the  supply  of  cotton  from  America. 

Eventually,  England  came  out  victorious.  Her  ships 
became  the  only  carriers  of  the  world.  The  Americans 
themselves  began  to  respect  English  blockades,  and  Eng- 
land, so  far  from  losing  her  trade,  both  retained  her  old 
ports  and  even  secured  for  herself  more  marts  for  her 
commercial  enterprises. 

It  is  curious  to  observe  that,  while  both  the  English 
and  the  French  governments  made  a  pretense  of  severely 
enforcing  their  respective  blockades,  they  both  made  a 
considerable  revenue  by  conniving  at  their  violations. 
Napoleon,  perceiving  the  hopelessness  of  enforcing  his 
decrees,  allowed  the  importation  of  English  goods  to 
certain  licensed  holders  who,  naturally,  had  to  pay  a 
very  heavy  price  for  their  license.  In  fact,  Napoleon 
himself  was  greatly  dependent  upon  English  goods. 
Even  his  very  soldiers  made  their  march  to  Russia  clad 
in  English-made  top-coats.  England,  though  not  im- 
pelled by  the  same  necessity,  resorted  to  the  same  prac- 
tice of  selling  trade  licenses,  and  made  therefrom  con- 
siderable profit. 

Such  was  the  nature  of  the  economic  war  waged  be- 
tween France  and  England.  It  was  a  war  that  was, 
throughout,  marked  by  the  greatest  dishonesty  and  dis- 
regard for  the  rights  of  others.  But  it  serves  as  a  use- 
ful illustration  of  the  growing  importance  of  trade,  as 
affecting  even  the  military  strength  of  nations. 

In  the  meantime,  there  had  been  waged  a  war  of  even 


Influence  of  Economics  on  Wars  and  Treaties     293 

still  greater  importance  to  the  English-speaking  world, 
and  that  is  the  War  of  American  Independence.  There 
can  be  no  doubt  that  the  causes  of  this  war  were  mainly 
economic.  To  none  other  of  her  colonies  did  England 
allow  so  much  political  liberty.  It  is  true  that  the 
American  colonies  were  considered  to  be  politically  de- 
pendent upon  the  mother  country,  and  that  the  authority 
of  the  governor  represented  the  jurisdiction  of  the 
Crown.  But  the  real  power  was  vested  in  the  hands  of 
the  popular  assemblies.  It  was  they  who  enacted  the 
laws,  and,  although  the  governor  could  refuse  his  assent, 
and  thus  prevent  the  passage  of  a  bill,  yet  their  power 
to  fix  the  governor's  salary  was  a  powerful  check  upon 
any  despotic  use  of  his  authority.  It  was  the  assem- 
blies, again,  that  had  the  power  of  the  purse,  levying 
the  general  taxes,  and  appropriating  the  public  moneys 
for  different  purposes. 

The  chief  causes  of  complaint  were  economic.  First 
of  all,  England  had  always  prohibited  any  manufactures 
in  the  colonies.  They  were  allowed,  indeed,  to  raise  the 
raw  produce,  but  the  manufacture  of  this  into  the  fin- 
ished material  was  to  be  reserved  for  English  manu- 
facturers in  the  mother  country.  This  was  especially  so 
in  regard  to  woolen  manufactures,  as  these  were  of  great 
importance,  and  England  was  especially  jealous  of  any 
competition  on  the  part  of  the  colonies. 

Also,  the  colonies  were  forbidden  to  trade  with  any 
country  except  with  the  mother  country.  In  the  stringent 
provisions  of  the  later  navigation  acts,  a  very  severe 
blow  was  dealt  at  the  nascent  colonial  commerce.  It 
certainly  seemed  very  unjust  that  the  colonies  should 
not  be  able  to  send  their  goods  to  the  market,  whether 
French  or  Spanish,  where  they  could  get  the  highest 
price.  The  fundamental  law  of  supply  and  demand  was 


294  Modern  Period 

hereby  absolutely  violated,  for  while,  on  the  one  hand, 
the  English  demand  was  not  sufficiently  extensive  to  ac- 
cept all  the  surplus  produce  of  the  colonies,  the  Ameri- 
cans on  their  side  could  not  obtain  from  England  all 
the  commodities  they  were  willing  to  buy.  Naturally, 
a  great  difficulty  was  experienced  in  enforcing  such  arbi- 
trary laws.  Both  countries  were  subjected  to  heavy 
protective  duties,  with  the  result  that  the  production  of 
wealth  was  considerably  impeded  and  cut  down,  both  in 
America  and  in  England. 

The  colonies  were  obviously  the  greater  sufferers  by 
this  arrangement,  but  their  patience  was  not  goaded  into 
desperation  until  England  attempted  to  impose  upon 
them  an  unjust  and  arbitrary  system  of  taxation.  In 
1765  was  passed  the  celebrated  Stamp  Act.  This  re- 
quired that  stamps,  varying  in  value  from  two  cents  to 
fifty  dollars,  should  be  placed  upon  all  legal  and  busi- 
ness papers,  such  deeds  as  wills  and  insurances,  and  even 
upon  newspapers  and  advertisements.  The  Americans, 
however,  declared  that  it  was  an  admitted  principle  that 
representation  and  taxation  should  go  together,  and  that 
the  two  had  been  imposed  without  their  consent,  and 
were,  therefore,  invalid.  In  the  South,  Patrick  Henry 
headed  the  opposition  in  Virginia,  and  successfully 
passed  his  resolutions  through  the  assemblies,  that 
no  tax  could  be  lawfully  imposed  without  their  own 
consent.  In  the  North,  a  Stamp  Act  Congress  was 
formed  in  Massachusetts,  which  declared  that  "the 
people  of  these  colonies  are  not,  and,  from  their 
local  circumstances,  can  not  be  represented  in  the 
House  of  Commons  in  Great  Britain  .  .  .  and 
that  no  taxes  ever  have  been  or  ever  can  be  constitu- 
tionally imposed  upon  them  except  by  their  respective 
legislatures." 


Influence  of  Economics  on  Wars  and  Treaties     295 

In  the  face  of  such  opposition,  the  Stamp  Act  was  re- 
pealed. But  afterwards,  fresh  taxes  were  imposed. 
These,  also,  shared  the  same  fate  as  the  Stamp  Act. 
Lord  North,  therefore,  in  1770,  repealed  all  the  exist- 
ing taxes  except  the  tax  on  tea,  which,  however,  was 
reduced  to  the  small  sum  of  about  six  cents  a  pound. 
So  thoroughly  aroused,  however,  was  the  spirit  of  oppo- 
sition, that  even  this  tax  was  resented,  as  establishing  a 
precedent,  and  as  embodying  the  principle  expressed  in 
the  king's  own  words,  "There  must  be  always  one  tax 
to  keep  up  the  right,  and  as  such  I  approve  the  tea 
duty." 

It  was  the  endeavor  to  collect  this  tax  that  brought 
about  the  famous  tea  riot  in  Boston  harbor,  the  first 
act  in  the  War  of  American  Independence.  The  early 
stages  of  the  war  were  fought  out  on  purely  economic 
grounds.  It  was  a  fight  for  a  free  market,  and  for  the 
exemption  from  arbitrary  financial  exactions.  Nowhere, 
perhaps,  can  we  find  a  more  clear  and  more  dramatic 
illustration  of  the  influence  of  the  economic  element  on 
history  than  the  way  in  which  it  brought  about  the  rise 
of  the  great  American  Republic. 


CHAPTER  VII 

THE     ECONOMIC     ELEMENT     IN     NATIONAL 
TREATIES 

NOT  only  in  war,  but  also  in  international  treaties, 
economics  held  a  very  important  position.  The  fif- 
teenth century  inaugurated  a  whole  series  of  commercial 
treaties,  or  treaties  containing  very  important  commer- 
cial clauses.  Among  the  first  of  these  was  the  celebrated 
Intercursus  Magnus  (1496). 

This  treaty  was  drawn  up  between  Henry  VII  of 
England  and  the  Low  Countries.  A  disagreement  had 
taken  place,  owing  to  the  circumstance  that  Philip,  Arch- 
duke of  the  Netherlands,  had  encouraged  the  impostor, 
Perkin  Warbeck,  who  laid  claim  to  the  English  throne. 
Henry  in  revenge  expelled  the  Flemings  from  Eng- 
land. Philip  retaliated  by  doing  the  same  to  the  Eng- 
lish in  Flanders.  Both  countries,  however,  suffered  so 
severely  that  they  withdrew  from  hostilities,  and  agreed 
upon  the  treaty  called  the  Intercursus  Magnus. 

The  main  terms  of  this  treaty  were  that  there  should 
be  free  trade  between  the  two  countries,  merchants  be- 
ing allowed  to  pass  backward  and  forward  on  condition 
of  producing  a  passport;  that  free  fishing  should  be  al- 
lowed in  English  waters,  and  that  merchant  ships  in 
stress  of  storm,  or  war,  could  take  refuge  in  the  harbors 
of  either  nation.  Other  clauses  showed  that  the  union 
of  the  two  countries  was  of  a  defensive  character. 
Thus,  enemies'  goods  were  forbidden  to  enter  the  terri- 
tory of  either  nation,  and  no  hospitality  was  to  be  ex- 
tended to  any  pirate  or  privateer.  Lastly,  certain  regu- 
lations were  laid  down  regarding  trade  itself.  Trade 


The  Economic  Element  in  National  Treaties        297 

in  foreign  bullion  was  allowed;  there  was  no  compulsory 
sale  of  goods,  and  security  might  be  given  for  debt. 

No  one  can  doubt  the  wisdom  of  Henry  VII  in  sign- 
ing this  treaty.  It  secured  the  Netherlands  to  his  side 
by  the  strong  ties  of  self-interest.  Perkin  Warbeck  soon 
found  himself  deprived  of  all  resources,  and  his  claim 
ended  in  failure.  But,  beyond  all  this,  the  treaty  itself 
embodied  principles  that  lie  at  the  foundation  of  all 
commercial  prosperity  and  greatness. 

In  1648  was  signed  the  Treaty  of  Westphalia.  This 
treaty  came  at  the  end  of  the  Thirty  Years'  War,  and  its 
main  provisions  settled  the  differences  between  Protes- 
tants and  Catholics,  as  well  as  the  territorial  position  of 
those  countries  that  had  taken  part  in  the  struggle. 
There  were,  however,  one  or  two  commercial  clauses, 
that  were  afterwards  to  cause  political  complications. 
The  Dutch  were  allowed  by  this  treaty  to  retain  their 
colonial  conquests  while  at  the  same  time  they  were 
secured  against  the  rivalry  of  the  Spanish  Netherlands 
by  the  closing  of  the  River  Scheldt.  Not  only  had  this 
clause  the  effect  of  delaying  for  a  considerable  time  the 
commercial  growth  of  Antwerp,  but  it  also  embittered 
relations  between  Charles  VI  of  Austria,  and  Holland. 
Charles  was  anxious  to  receive  the  commerce  of  the 
Netherlands,  but,  not  venturing  to  open  the  Scheldt, 
he  formed  the  Ostend  Company  for  the  purpose  of 
opening  up  trade  with  India.  This  displeased  the 
Dutch,  and  their  side  was  taken  by  England,  who  deter- 
mined to  suppress  the  company.  Thus,  hostilities  were 
brought  about  between  England  and  Austria.  After 
a  general  European  war,  in  which  Austria  was  sup- 
ported by  Spain,  Charles  agreed,  in  the  Treaty  of 
Vienna  (1731),  to  dissolve  the  Ostend  Company. 

The  Methuen  Treaty  was  signed  in  1703  between 


298  Modern  Period 

England  and  Portugal,  during  the  War  of  the  Spanish 
Succession.  Louis  XIV  was  endeavoring  to  enforce  the 
pretensions  of  his  house  to  the  Spanish  throne,  and  these 
pretensions  were  being  obstinately  rejected  by  the  Grand 
Alliance.  At  first,  Portugal  was  wavering,  and  it  was 
the  Methuen  Treaty  that  secured  to  the  allies  her  valu- 
able aid.  Mr.  Paul  Methuen,  as  special  ambassador, 
brought  about  the  treaty  which  was  named  after  him. 
It  provided  that  woolen  clothes  should  be  admitted  into 
Portugal  and  that,  in  return  for  this  concession,  Portu- 
guese wines  should  be  admitted  into  England  at  a  con- 
siderably reduced  duty. 

Commercially,  this  treaty  had  important  results. 
English-manufactured  woolens  began  to  increase,  and 
the  rapid  growth  of  this  industry  can  be  estimated 
by  the  enormous  amount  of  Brazilian  bullion  that  was 
imported  into  England.  Politically,  this  treaty  had  the 
effect  of  cementing  the  alliance  between  England  and 
Portugal. 

The  Treaty  of  Utrecht  terminated  the  War  of  the 
Spanish  Succession  in  1713.  The  economic  clauses  were 
of  paramount  importance.  They  decided  some  of  the 
outstanding  colonial  questions  between  England  and 
France.  For  England  secured  Gibraltar,  Minorca  in 
the  Mediterranean,  and  Newfoundland,  Acadia,  and 
Hudson  Bay.  At  the  same  time,  trade  communica- 
tions were  again  to  be  opened  between  England  and 
France.  This  last  clause,  however,  was  bitterly  de- 
nounced by  many  Englishmen  as  an  infringement  of  the 
Methuen  Treaty,  and,  as  a  matter  of  fact,  it  was  shortly 
withdrawn. 

While  trade  relations  between  England  and  France 
remained  thus  suspended,  a  commercial  treaty  of  a  fa- 
vorable character  was  signed  in  1786  between  England 


The  Economic  Element  in  National  Treaties        299 

and  the  United  States.  This  treaty  was  called  the  Eden 
Treaty,  after  the  name  of  William  Eden,  afterwards 
Lord  Auckland,  who  was  the  chief  inaugurator.  It  pro- 
vided for  a  system  of  reciprocal  customs  and  commer- 
cial advantages  which  were  given  and  received  on  both 
sides.  The  treaty,  however,  was  short-lived,  and  was 
followed  soon  afterwards  by  the  more  important  Treaty 
of  Amiens,  signed  in  1803,  after  the  early  successes  of 
the  Consul  Bonaparte  during  the  French  revolutionary 
war.  This  treaty  had  the  effect,  besides  making  various 
territorial  arrangements,  of  placing  the  whole  trade  of 
the  world  in  the  hands  of  England.  More  than  ever 
did  English  shipping  monopolize  the  carrying  trade  of 
the  world.  Moreover,  England  was  now  a  greater  pro- 
ducer than  any  other  country,  and  was  enabled  to  fix  the 
market  price  of  almost  every  commodity.  It  was  this 
commercial  independence  and  greatness  of  England  that 
enabled  her  afterwards  to  defy  the  Berlin  Decrees,  and 
gave  to  her  such  powers  of  endurance  against  the  power 
of  Napoleon. 

The  Treaty  of  Paris  (1814),  which  followed  the 
fall  of  Napoleon,  also  contained  some  important  eco- 
nomic clauses.  England  retained  the  colonies  of  Mauri- 
tius, Tobago,  and  St.  Lucia  taken  from  the  French,  and 
also  the  Dutch  colonies  of  Cape  of  Good  Hope,  Deme- 
rara,  and  Essequibo.  The  acquisition  of  the  Cape  was 
the  beginning  of  the  great  English  colonial  settlements 
in  Africa.  Later  on,  in  the  same  century,  came  the 
commercial  Cobden  Treaty  in  1861.  By  this  treaty, 
certain  commercial  concessions  were  made  between  Eng- 
land and  France.  While  England  reduced  the  duties  on 
French  wines  and  brandy,  and  abolished  those  hitherto 
levied  on  manufactured  goods,  the  duties  that  had  been 
levied  in  France  on  English  imports  were  also  consider- 


300  Modern  Period 

ably  reduced.  This  treaty  was  the  victorious  expression 
of  the  doctrine  of  Free  Trade,  of  which  Mr.  Cobden  was 
so  able  an  exponent,  and  not  only  was  it  advantageous 
to  the  commercial  prosperity  of  both  countries,  but  it 
also  promoted  so  strong  an  amity  between  the  two  na- 
tions that  it  was  not  seriously  impaired  by  the  downfall 
of  Napoleon  III,  who  had  signed  the  treaty. 

Such  were  the  most  important  commercial  treaties  that 
were  signed,  down  to  the  middle  of  the  last  century. 
They  were  all  so  many  steps  that  gradually  led  up  to 
the  present  condition  of  circumstances,  when  commer- 
cial treaties  are  as  numerous,  and  quite  as  important,  as 
political  treaties.  Indeed,  the  commercial  element  in 
treaties  now  seems  to  preponderate,  and  the  councils 
of  foreign  statesmen  have  to  take  into  consideration 
economic  questions  more,  perhaps,  than  any  other 
subject. 


CHAPTER  VIII 

INFLUENCE   OF  THE   ECONOMIC    ELEMENT   ON 
THE    FRENCH    REVOLUTION 

THE  French  Revolution  may  be  truly  considered  as 
the  starting  point  of  a  new  era,  not  only  for  France  her- 
self, but  for  the  whole  of  Europe.  The  Revolution  was 
the  result  of  certain  doctrines,  that  had  been  formulated 
even  from  the  time  of  Hobbes,  and  were  now  spreading 
with  very  effective  results  over  the  whole  of  the  Conti- 
nent. Such  doctrines,  for  example,  as  that  government  is 
merely  the  result  of  a  social  contract,  which  can  be  kept 
or  rescinded  according  to  the  will  of  the  people,  and  that 
the  welfare  of  the  State,  as  a  whole,  is  of  lesser  impor- 
tance than  the  welfare  of  the  individual,  when  pushed  to 
their  ultimate,  practical  consequences,  were  bound  to 
accomplish  great  political  revolutions. 

It  is  true  that,  even  before  the  Revolution,  there  were 
certain  monarchs  in  Europe  who  were  imbued  with  mod- 
ern philanthropic  ideas,  and  tried  to  introduce  certain 
measures  likely  to  ameliorate  the  condition  of  the  indi- 
vidual living  in  the  lower  strata  of  society.  Such,  for 
example,  were  the  enlightened  despots  like  Frederick 
the  Great,  Catharine  II  of  Russia,  Joseph  II  of  Aus- 
tria. But  these  rulers  were  not  thorough.  They  still 
believed  very  strongly  in  the  goodness  of  personal  gov- 
ernment, and  they  little  thought  of  placing  political 
power  in  the  hands  of  the  people. 

The  French  Revolution,  however,  gave  reality  and 
completeness  to  the  new  doctrines.  Not  only  was  the 
French  monarchy  overthrown,  but  the  shock  was  felt, 
as  well,  in  all  the  other  European  countries.  In  spite 


302  Modern  Period 

of  reactionary  tendencies,  in  spite  of  the  Holy  Alliance 
formed  between  Austria,  Russia,  and  Prussia  to  put 
down  any  revolution  against  the  established  govern- 
ment, the  principles  of  Democracy  and  nationalization 
pursued  their  downward  march.  In  Germany,  the 
Carlsbad  Decrees  and  the  influence  of  Metternich  only 
delayed  for  thirty  years  the  establishment  of  representa- 
tive government.  In  Belgium,  it  was  the  active  con- 
tinuance of  the  revolutionary  principles  of  France  that 
brought  about  the  formation  of  a  liberal  constitutional 
government.  Even  such  reactionary  countries  as  Spain 
and  Italy  were  not  exempt  from  the  wave  of  democratic 
agitation,  and  were  obliged  to  set  up  within  their  bor- 
ders limited  constitutional  monarchies.  England,  also, 
which  had  already  all  the  elements  of  constitutional  gov- 
ernment, underwent  the  crisis  of  the  Chartist  Riots,  and 
there  is  no  doubt  that  the  rise  of  the  Third  Estate  in 
France  gave  a  great  impetus  to  the  agitation  for  parlia- 
mentary reform  in  1834. 

In  examining  the  causes  of  this  great  epoch-making 
event,  the  French  Revolution,  we  shall  find  that  they 
were  very  varied  in  character.  They  were  of  a  political, 
religious,  and  economic  nature.  The  exclusion  of  the 
people  from  any  share  in  the  administration  of  affairs, 
the  arbitrary  way  in  which  the  king  could  enforce  his 
will  on  the  Parlement,  and  the  despotic  sway  of  the 
intendants,  who  were  the  ministers  and  agents  of  royal 
power,  were  certainly  causes  of  complaint.  To  this 
must  also  be  added  the  religious  condition  of  France. 
While  the  enormous  disproportion  between  the  salaries 
of  the  upper  and  lower  clergy  made  the  latter  discon- 
tented, the  prevalence  of  unbelief  amongst  all  classes  of 
society  was  removing  one  of  the  strongest  props  of  con- 
servatism, namely,  the  hold  of  religion  upon  the  people. 


Influence  of  Economics  on  the  French  Revolution  303 

Far  more  powerful,  however,  than  either  the  politi- 
cal or  religious  were  the  economic  causes.  These  were 
the  driving  power  of  the  whole  movement.  No  sooner 
were  these  in  any  way  relaxed,  than  the  revolutionary 
movement  also  began  to  slacken.  And,  on  the  other 
hand,  the  events  that  brought  about  the  revolutionary 
climax  were  essentially  economic.  It  will  be  necessary, 
therefore,  to  analyze  the  material  condition  of  France 
immediately  preceding  the  Revolution,  and  then  trace 
the  various  steps  by  which  the  economic  condition  grad- 
ually brought  about  the  abolition  of  the  existing  regime 
and  the  substitution  of  a  republic  for  a  monarchy. 

In  France,  the  greater  part  of  the  land  was  owned 
by  the  wealthy,  only  about  one-fourth  being  owned  by 
the  peasants.  Even  this  ownership  was  not  absolutely 
free.  There  still  remained  some  of  the  old  feudal  obli- 
gations in  their  most  vexatious  form.  In  addition  to 
the  payment  of  a  chief  rent,  which  was  supposed  to  be 
a  substitution  for  other  services,  the  tenant  had  to  pay 
the  lord  of  the  manor  a  certain  portion  of  his  yearly 
crop.  There  were  also  certain  other  obligations,  more 
of  a  humiliating  than  a  financial  nature.  The  peasant, 
for  example,  had  to  grind  his  corn  in  the  lord's  mill, 
and  to  press  his  grapes  in  the  lord's  wine  press.  At 
first,  these  were  regarded  as  favors,  rather  than  as  obli- 
gations. But  the  fact  that  a  certain  portion  of  the 
produce  that  was  thus  sent  up  to  the  lord's  mill  and 
wine  press  had  to  be  left  behind  by  way  of  payment, 
made  these  favors  both  vexatious  and  even  burdensome. 
Then,  again,  the  lord  could  exercise  certain  rights,  in 
regard  to  the  property  of  the  peasant,  rights  that  might 
easily  become  an  instrument  of  the  most  odious  tyranny 
and  degradation.  Hunting  and  keeping  pigeons  were 
strictly  forbidden  to  the  peasant,  but  he  had  to  allow 


304  Modern  Period 

the  lord's  horses  and  hounds  to  gallop  over  his  fields, 
and  the  lord's  pigeons  to  pick  up  grain  in  his  own  do- 
main. The  peasant  was  also  forbidden  to  reap  and 
sow  his  own  land,  except  at  stated  times.  Sometimes, 
ridiculous  customs  were  even  forced  upon  him,  such  as 
beating  the  water  in  the  castle  ditch,  so  as  to  keep  the 
frogs  quiet.  In  former  times,  this  condition  of  servitude 
and  degradation  had  not,  for  obvious  reasons,  caused 
much  discontent.  But  circumstances  then  were  different. 
The  lord  did  something  in  return  for  all  that  he  exacted, 
and  for  his  position  of  domineering  superiority.  He,  at 
least,  acted  as  the  protector  of  the  peasants  immediately 
under  his  care,  and  he  performed  for  them  the  func- 
tions of  judge,  administrator,  and  police  magistrate. 
Richelieu,  however,  and  after  him,  Louis  XIV,  in  their 
jealousy  of  the  nobles,  had  removed  from  them  those 
functions,  and  had  entrusted  them  to  a  hierarchy  of 
civil  servants,  called  intendants.  The  nobles,  however, 
while  shorn  of  their  usefulness,  were  still  allowed  to 
exact  a  price  for  the  service  that  they  were  no  longer 
able  to  render. 

As  though  all  this  were  not  sufficient,  the  landlord 
was  an  absentee  of  a  most  odious  description.  To  live  at 
court  was  essential  to  the  nobleman's  existence.  No 
greater  misfortune  could  be  conceived  than  for  him  to 
be  exiled  from  the  glitter  and  sunshine  of  his  sover- 
eign's presence,  and  to  live  in  the  quiet,  monotonous  ex- 
clusion of  the  country.  The  king  himself  required  their 
presence  at  court,  and  any  lengthy  period  of  retirement 
in  the  country  would  have  been  construed  into  an  insult. 
Obviously,  court  life  meant  expenditure,  and  often  ex- 
travagance, the  money  for  which  had  to  be  secured  with 
heartless  severity  from  the  wretched  peasant. 

Nor  was  the  nobleman  the  only  offender.    Vast  quan- 


Influence  of  Economics  on  the  French  Revolution  305 

titles  of  land  were  placed  out  of  cultivation  by  the  cus- 
tom of  granting  out  capitainaries.  These  were  large 
districts  of  land  granted  by  the  king  to  princes  of  the 
blood  for  hunting  purposes.  On  such  lands,  even  the 
old  manorial  rights  were  swept  away  in  order  that  the 
prince  might  enjoy  the  unlimited  right  of  preserving 
and  hunting  game.  Any  unfortunate  peasant  living  on 
a  capitainaire  was  absolutely  subordinated  to  the  exer- 
cise of  this  right.  Not  only  did  the  game  wander  at 
will  over  the  whole  country,  destroying  the  crops,  but 
the  peasant  was  sternly  forbidden  to  engage  in  any  agri- 
cultural occupation  that  might  in  any  way  be  prejudicial 
to  the  welfare  of  the  game.  And  what  added  to 
injury  the  sting  of  insult,  was  that  the  peasant  was  for- 
bidden, under  pain  of  the  galleys,  to  kill  any  of  the 
game  that  might  wander  over  his  property. 

Between  the  cruel  and  insolent  rapacity  of  king  and 
noble,  the  condition  of  many  of  the  peasants  was  hard, 
indeed.  Yet  it  would  be  hardly  true  to  say  that  the 
misery  was  universal.  Certain  travelers  in  France  spoke 
very  highly  of  the  scenes  of  contentment  and  even  gaiety 
that  they  saw  in  certain  districts,  but  there  is  little  doubt 
that,  regarding  the  peasant  class  as  a  whole,  its  ma- 
terial condition  and  circumstances  were  such  as  to  cause 
dangerous  discontent. 

If  we  turn  our  attention  from  the  country  to  the 
towns,  there  also  we  shall  find  that  the  old  fetters  of 
the  Middle  Ages  were  crippling  and  galling  the  com- 
mercial activity  of  the  country.  All  manufactures  and 
trade  were  practically  in  the  hands  of  the  old  medieval 
guilds.  No  outsider  could  carry  on  any  handicraft,  un- 
less he  belonged  to  one  of  these  associations.  Nor  were 
there  any  of  the  old  benefits,  formerly  derived  from 
thus  placing  the  monopoly  of  production  in  the  hands  of 


306  Modern  Period 

a  few.  Old-fashioned  ways  were  adhered  to,  at  the 
expense  of  loss  of  production,  while  inventions,  even  of 
the  most  important  nature,  were  impeded  by  an  almost 
insuperable  wall  of  prejudice. 

The  result  was  that,  while  the  upper  masters  of  trades 
became  rich  and  formed  a  sort  of  bourgeois  aris- 
tocracy, the  lower  members  of  the  industrial  trades  were 
left  unjustly  in  the  background.  And  what  added  con- 
siderably to  the  bitterness  of  their  lot  was  the  arrogance 
of  those  who  held  the  upper  position  in  the  same  trade 
as  themselves.  Distinctions  of  the  most  ridiculous  kind 
were  established  in  order  to  set  off  trivial  grades  of 
precedence.  The  altitude  of  a  seat  in  the  shop,  the  num- 
ber of  buckles  that  could  be  worn  in  a  wig — such  things 
as  these  were  the  stars  and  badges  of  the  trade  aristoc- 
racy. It  is  obvious,  therefore,  that  the  jealousy  and  bit- 
terness of  those  belonging  to  the  lower  grades  must  have 
given  intensity  to  the  cry  for  equality  and  brotherhood 
of  man  that  was  heard  so  loud  during  the  Revolution. 

Having  considered  the  elements  of  economic  discom- 
fort in  the  surroundings  of  town  and  country,  we  must 
now  consider  the  economic  cause  that,  more  than  any 
other,  led  up  to  the  French  Revolution.  This  cause  was 
the  system  of  taxation,  which  violated  nearly  all 
the  canons  laid  down  by  Turgot.  The  taxes,  that  is  to 
say,  were  unequal,  they  were  uncertain  and  capricious, 
and  they  were  collected  in  the  most  expensive  way.  This 
fact,  however,  will  come  out  in  stronger  light  if  we  con- 
sider, first  of  all,  the  nature  of  the  taxation,  and  then  the 
way  in  which  it  was  distributed. 

First,  with  regard  to  the  direct  taxes,  which  were  as 
follows :  a.  The  taille.  This  was  a  land  tax,  levied  on 
all  the  lands  that  did  not  belong  to  the  privileged  classes 
of  the  nobility  and  clergy.  The  reason  of  this  exemp- 


Influence  of  Economics  on  the  French  Revolution  307 

tion  was  that  the  tax  was  a  feudal  tax,  originally  paid  by 
the  villein  in  place  of  granting  military  service.  Since 
the  noble  gave  military  service  in  person,  and  the  clergy 
by  proxy,  they  were  naturally  exempt  from  this  contribu- 
tion. When,  however,  the  obligation  of  military  ser- 
vice had  passed  away,  the  exemption  still  remained. 

The  tattle  was  of  two  kinds,  being  the  faille  reele, 
or  the  tax  levied  on  the  land,  and  taille  personnelle,  or 
tax  levied  on  the  profits  of  land  or  industry.  The  latter 
kind  was  the  most  general,  the  former  existing  only  in 
Southern  France. 

In  either  case,  the  tax  was  levied  in  a  very  obnoxious 
manner.  It  was  distributed  unevenly  and  unjustly 
among  the  different  provinces  and  districts  and  parishes, 
and  the  same  bad  qualities  attended  its  levy  even  on  the 
individuals  within  the  same  parish.  It  was  left  to  the 
discretion  of  the  collector  as  to  the  amount  he  should 
collect  from  the  individual.  Undue  influence,  therefore, 
could  often  be  exerted,  and  endless  lawsuits  wasted  con- 
siderable sums  of  money. 

b.  Another   direct   tax   was   the    capitation    tax,    to 
which  all  were  subject.    This  was  really  an  income  tax, 
and  was  supposed  to  be  graded  according  to  the  wealth 
of  the  individual.    In  practice,  however,  it  fell  more  se- 
verely upon  the  poor.    No  very  definite  regulations  be- 
ing in  force,  the  rich  could  generally  avail  themselves  of 
any  loophole  that  the  law  afforded,  whereas  the  poor 
and  simple  were  utterly  unable  to  manipulate  the  ma- 
chinery to  their  own  benefit. 

c.  A  third  kind  of  direct  tax  was  the  property  tax. 
At  first,  this  was  one-twentieth  part  of  the  income  derived 
from  land,  but  it  was  afterwards  raised  to  two-twen- 
tieths,  and   during  war  even   another  twentieth   was 
added. 


308  Modern  Period 

d.  Amongst  the  direct  taxes  might  also  be  enu- 
merated the  corvees,  which  meant  that  the  peasants,  ex- 
clusively, were  subjected  by  statute  to  enforced  labor  on 
the  public  roads,  and  to  requisitions  for  the  transport  of 
soldiers.  In  one  way,  this  was  perhaps  one  of  the  most 
glaring  of  all  the  unjust  impositions  inflicted  on  the 
lower  classes.  It  meant  that  the  peasants'  labors,  and 
the  use  of  their  teams,  were  not  at  their  service  during 
the  busiest  time  of  the  year.  The  method  of  enforcing 
the  obligation  was  also  exceedingly  onerous.  Much  was 
left  to  the  discretion  of  local  intendants  and  military 
commanders,  and  it  can  be  easily  imagined  that  the 
soldiers  were  not  over-scrupulous  in  carrying  out  the 
commands  of  their  officers. 

In  connection  with  the  corvees  might  be  mentioned 
also  the  obligation  of  providing  lodging,  washing,  and 
candles  for  soldiers  who  were  quartered  on  them,  and 
of  providing  forage  for  their  horses. 

Altogether,  the  burden  of  the  direct  taxes  and  im- 
positions must  have  fallen  very  heavily  on  the  shoulders 
of  the  lower  classes.  It  has  been  calculated  that  no  less 
than  four-fifths  of  the  peasant's  income  must  have  been 
sacrificed  in  the  discharge  of  these  burdens.  And  there 
must,  also,  be  taken  into  account  all  the  incidental  acts 
of  tyranny  and  humiliation  endured  from  the  hands  of 
minor  officials. 

We  now  come  to  the  indirect  taxes,  which  were  as 
equally  oppressive  as  the  direct  taxes. 

The  first  of  these  in  unpopularity  was  certainly  the 
gabelle,  or  salt  tax.  Here  again,  one  of  the  worst  fea- 
tures was  the  unequal  distribution  of  the  tax.  While 
some  provinces  escaped  with  only  a  light  tax,  other  dis- 
tricts like  Provence,  Languedoc,  and  some  of  the  in- 
land provinces  of  Northern  France  had  to  pay  about 


Influence  of  Economics  on  the  French  Revolution  309 

one-third  of  the  whole  assessment.  Naturally,  the  temp- 
tation to  smuggle  salt  from  one  province  to  another  was 
irresistible.  And  in  spite  of  a  whole  army  of  revenue 
officers,  large  quantities  were  actually  so  smuggled. 
So  great,  indeed,  was  the  profit  from  this  evasion  of  the 
law  that  the  transportation  of  ten  pounds  of  salt  beyond 
a  frontier  meant  the  gain  of  a  sum  of  money  equal  to 
the  pay  of  a  hard-working  day.  Nor  was  it  possible  to 
evade  the  tax  by  doing  without  salt,  for  every  household 
in  certain  parts  of  France  had  to  buy  seven  pounds  of 
salt  every  year. 

Then,  there  were  also  the  customs  duties,  levied  not 
only  on  goods  imported  from  abroad,  but  on  those 
transported  from  province  to  province.  Every  road  and 
canal  in  France  was  barricaded  by  a  complicated  system 
of  customs,  and  the  goods  thus  taxed  were  not  merely 
wines  and  spirits,  but  also  ordinary  foodstuffs. 

Naturally,  the  results  were  both  disastrous  and  gall- 
ing. The  cultivation  of  the  vine  was  discouraged,  and 
the  natural  laws  of  supply  and  demand  were  being  con- 
tinually violated.  Moreover  the  irritation,  caused  by 
domiciliary  visits  and  continual  inspections,  formed  a 
very  intolerable  factor  in  the  situation. 

Most  of  these  indirect  taxes  were  leased  out  to 
Farmers-General,  who  paid  a  fixed  rent  every  year,  and 
were  then  allowed  to  collect  and  retain  the  net  product 
of  the  taxes.  Such  a  system,  it  will  perhaps  be  remem- 
bered, was  sufficiently  odious  during  the  days  of  the 
Roman  Republic.  It  was  still  more  so  during  the  rapid 
decline  of  the  French  monarchy.  The  rapacity  of  the 
fermiers  generaux  was  a  hateful  burden,  and  the  rich 
buildings,  erected  in  Paris  for  their  administration, 
called  forth  burning  denunciations  from  the  impover- 
ished taxpayers. 


310  Modern  Period 

Having  thus  passed  in  general  review  the  impover- 
ished condition  of  the  nation,  the  obstacles  placed  in  the 
way  of  development  of  manufactures  and  of  all  sorts 
of  industries,  the  hateful  economic  distinctions  between 
class  and  class,  and,  above  all,  the  intolerable  condition 
of  the  system  of  taxation,  we  must  now  consider  how 
the  different  elements  combined  to  bring  about  the  Revo- 
lution. 

Louis  XVI,  who  had  ascended  the  French  throne  in 
1774,  was  by  no  means  the  least  worthy  representative 
of  the  line  of  French  kings.  His  intentions  were  good, 
and  he  seems  to  have  had  at  heart,  at  least,  the  general 
welfare  of  the  people.  Unfortunately,  however,  his 
character  was  irresolute,  and  he  had  not  sufficient 
strength  of  will  to  sustain  able  ministers  against  the 
prejudice  of  the  courtiers  and  of  the  privileged  classes. 

His  first  minister  was  Turgot.  As  we  have  already 
pointed  out,  he  was  the  leader  of  the  Physiocrats,  and 
a  determined  enemy  of  the  restrictions  that  government 
had  placed  upon  trade  and  industry.  He  instituted  a 
whole  series  of  practical  reforms.  Liberty  of  transpor- 
tation of  corn  from  province  to  province  was  allowed, 
the  unjust  incidence  of  the  gabelle  was  alleviated,  the 
corvee  was  replaced  by  a  definite  tax  upon  land,  while 
all  the  old  monopolizing  trade  associations  were  abol- 
ished. Naturally,  the  opposition  on  the  part  of  the 
privileged  classes  was  intense.  However  popular  the 
measures  may  have  been,  the  people  were  not  yet  suffi- 
ciently organized  to  defend  their  champion.  Not  only 
were  the  nobles,  clergy,  and  lawyers  opposed  to  him, 
but  even  the  Parlement  of  Paris,  and  the  members  of 
the  king's  own  household,  were  bitterly  hostile  to  his 
reforms. 

The  king  gave  way.    Turgot  was  disgraced  and  dis- 


Influence  of  Economics  on  the  French  Revolution  3 1 1 

missed  from  office,  and  his  place  was  taken  for  a  time  by 
Necker,  a  Genevan  banker  well  acquainted  with  the 
principles  of  finance.  But  whatever  might  have  been 
his  capacity  for  figures,  he  was  not  a  statesman. 

At  first,  indeed,  he  was  fairly  successful.  The  public- 
ity that  he  gave  to  the  public  accounts,  and  his  willing- 
ness to  obtain  popular  consent  for  taxation,  endeared 
him  to  the  people.  Also,  his  dexterity  in  creating  loans 
enabled  him  to  relieve  the  waning  condition  of  the 
treasury.  He  also  tried  to  economize  the  whole  system 
of  administration  by  removing  a  great  number  of  highly 
paid  but  useless  officials,  abolishing  the  system  of  farm- 
ing out  the  taxes,  and  attempting  to  remove  the  heavy 
tolls  on  roads,  canals,  and  rivers. 

Even  though  the  war  between  France  and  England, 
occasioned  by  the  American  revolt,  had  handicapped  his 
financial  endeavors,  he  was  still  able  to  meet  the  press- 
ing exigencies  that  constantly  occurred.  But  the  privi- 
leged classes  rose  up  against  him.  Like  Turgot,  he  was 
forced  to  retire,  and  the  next  man  who  attempted  to 
deal  with  the  financial  situation  was  Calonne.  For  four 
years  Calonne  held  the  office  of  comptroller-general. 
But,  in  spite  of  all  his  versatility  and  resourcefulness, 
bankruptcy  became  imminent.  In  vain  did  he  try  to 
sustain  credit  by  lavish  expenditure  of  money  in  public 
festivities,  and  the  gratification  of  the  greed  of  hungry 
courtiers.  In  1786,  the  crisis  came.  At  one  extraordi- 
nary assembly  of  the  nobles,  bishops,  magistrates,  and 
officials  of  the  kingdom,  Calonne  made  a  public  state- 
ment of  the  whole  financial  condition.  He  proposed  to 
them  the  abolition  of  privileges  and  exemptions,  the 
reduction  of  the  gabelle,  the  substitution  of  a  poll  tax 
for  the  corvee.  Naturally,  these  proposals  excited  even 
still  greater  opposition,  when  coming  from  the  mouth  of 


312  Modern  Period 

Calonne,  than  when  they  had  come  from  the  mouth  of 
Turgot.  Calonne  fell,  and  Necker  was  once  more  re- 
called to  office. 

The  first  thing  that  Necker  advised  was  to  summon 
the  States-General,  of  which  the  Third  Estate  formed 
one  integral  part.  Dramatic,  indeed,  was  this  meeting 
of  the  States-General  after  the  lapse  of  so  many  years. 
It  marked  the  revival  of  the  power  of  the  people  that 
had  hitherto  lain  dormant,  and  was  the  first  act  of  that 
great  drama  by  which  the  people  were  destined  to  assert 
for  themselves  the  national  control  that  had  been 
monopolized  by  king  and  courtiers.  It  is  a  fact  of 
strong  significance  that,  while  feudalism  left  behind  in 
its  traces  the  main  causes  of  the  Revolution,  it  also,  in 
the  old  power  of  the  communes,  bequeathed  an  instru- 
ment whereby  the  ultimate  object  of  the  Revolution 
could  be  accomplished  by  full  constitutional  means. 

Proceedings  began  with  a  Solemn  High  Mass  in 
honor  of  the  Holy  Ghost.  After  this  took  place  the 
formal  procession  of  all  the  orders  of  the  States-General. 
First  came  the  black  rows  of  the  five  hundred  deputies 
of  the  Third  Estate;  then,  the  nobility  in  their  scar- 
let robes;  behind  them  again,  came  the  clergy  divided 
into  two  divisions,  the  first  comprising  the  dignitaries  in 
their  purple  robes,  and  then,  two  hundred  parish  priests 
in  somber  black.  Last  of  all  came  the  king  surrounded 
by  his  courtiers. 

At  Versailles  took  place  the  first  session  of  the  event- 
ful assembly.  A  great  deal  of  time  was  spent  in  the  pre- 
liminaries, in  deciding  questions  of  etiquette,  and  in  al- 
lotting to  every  one  his  proper  place.  Moreover,  there 
were  two  questions  of  formality  to  be  settled,  which 
were  of  great  legislative  importance:  first,  whether  the 
three  orders  should  assemble  together  or  apart,  and 


Influence  of  Economics  on  the  French  Revolution  313 

secondly,  whether  the  representatives  of  the  Third  Es- 
tate should  be  equal  in  number,  or  whether  the  Third 
Estate,  following  an  ancient  custom,  should  have  a  ma- 
jority of  representatives.  Six  weeks  passed  in  fruitless 
attempts  to  solve  these  questions.  No  compromise 
seemed  capable  of  being  effected,  so,  on  June  17,  1789, 
the  Third  Estate  assumed  the  responsibility  of  sitting 
alone,  and  declaring  itself  to  be  the  National  Assembly. 
The  move  was  effective.  The  king  had  to  give  way, 
and  at  his  request  the  nobles  and  clergy  joined  the  depu- 
ties of  the  Third  Estate. 

In  the  meantime,  economic  discontent  in  the  country 
was  necessitating  some  immediate  measures  of  reform. 
Owing  to  famine  and  drought,  the  condition  of  the 
peasant  was  becoming  absolutely  intolerable.  Throngs 
of  discontented  peasants  scoured  the  country  roads,  and 
into  the  streets  of  Paris  came  numbers  of  ill-clad  men 
of  sinister  appearance.  Riots  broke  out  both  in  Paris 
and  in  the  provinces,  and,  to  make  matters  more  serious, 
the  soldiers  themselves  showed  a  disposition  to  side  with 
the  rioters.  In  order  to  restore  tranquillity,  the  Na- 
tional Guard  was  organized,  and  attempts  were  made 
to  supply  the  capital  with  provisions. 

At  length,  matters  came  to  a  climax.  The  National 
Assembly  took  upon  itself  to  restore  order  by  removing 
a  whole  list  of  fundamental  grievances.  All  the  old  feu- 
dal regime  was  completely  swept  away,  and  every  citizen 
was  declared  eligible  to  all  offices  and  dignities  ecclesi- 
astical, civil,  and  military.  Corvees  and  the  other  feu- 
dal services  were  abolished,  the  trade  associations  were 
dissolved,  and  all  exclusive  rights  of  hunting  were  com- 
pletely swept  away. 

On  the  4th  of  August  began  the  work  of  forming  the 
new  constitution,  in  which  the  legislative  powers  were  to 


3 14  Modern  Period 

be  exercised  by  the  nation,  acting  through  the  Assembly. 
Sieyes  was  the  chief  legislator,  Mirabeau  the  orator. 
Sieyes  was  a  democratic  priest,  a  versatile  logician,  and 
a  fecund  framer  of  theories  and  constitutions.  Mira- 
beau was  a  count  of  haughty  and  imperious  temper, 
which  was  little  under  control.  He  was  also  venal,  and 
ambitious  to  be  a  minister.  But,  in  the  main,  he  was 
faithful  to  the  king,  and  was  the  leader  of  the  moderate 
party  which  could  alone  ward  off  the  Revolution. 

With  the  judicial  and  purely  political  measures  passed 
by  the  Assembly,  we  need  not  delay,  but  the  financial 
and  economic  changes  demand  consideration.  Necker, 
still  the  financial  administrator,  was  the  organizer  of 
the  economic  changes.  As  money  was  urgently  needed, 
he  had  again  recourse  to  the  old  expedient  of  raising 
loans.  Credit,  however,  was  exceedingly  bad,  and  ex- 
penses were  continually  increasing.  The  necessity  of 
finding  employment  for  the  unemployed,  for  the  pur- 
chase of  corn  with  which  to  feed  the  people,  and  for 
maintaining  the  National  Guard,  were  incessant  drains 
on  the  treasury;  at  the  same  time,  the  people,  since  the 
outbreak  of  the  Revolution,  had  failed  to  pay  any  taxes. 
As  a  desperate  remedy,  Necker  then  proposed  a  con- 
tribution from  each  person's  income,  to  be  assessed  on 
his  own  valuation  of  his  property.  Even  this  failed,  and 
nothing  was  left  but  to  accept  the  revolutionary  scheme 
of  Talleyrand,  who  pointed  out  the  boundless  estates  of 
the  Church. 

After  broaching  the  theory  that  the  Church  was  not 
the  absolute  owner  of  its  domains,  but  only  an  adminis- 
trator, Talleyrand  proposed  that  the  Church  property 
should  be  seized  and  placed  at  the  disposal  of  the  na- 
tion. In  spite  of  the  protests  of  the  clergy,  the  pro- 
posal was  carried  out.  On  December  19,  1789,  Church 


Influence  of  Economics  on  the  French  Revolution  315 

property  was  thrown  open  for  sale  to  the  amount  of 
four  hundred  million  francs.  Purchases,  however,  were 
very  few,  and,  after  an  interval  of  three  months,  various 
municipalities  themselves  purchased  the  estates,  intend- 
ing to  sell  them  over  again  and  thereby  reap  a  hand- 
some profit.  In  the  meantime,  paper  money  was  issued 
that  had  the  value  of  bank  notes.  These  assignats,  as 
they  were  called,  could  be  realized  in  Church  lands  ac- 
cording to  the  amount  of  their  face  value.  They  were 
also  declared  legal  currency,  and  it  was  made  a  capital 
crime  not  to  receive  the  assignats  at  par. 

The  results  were  fatal.  The  assignats  rapidly  de- 
preciated in  value.  Many  speculators,  availing  them- 
selves of  the  liberty  of  purchasing  Church  lands  for  a 
merely  nominal  price,  could  cut  down  the  timber,  make 
what  profit  they  could  out  of  the  movable  property, 
and  then  decamp.  At  the  same  time,  as  inevitably  hap- 
pens under  such  circumstances,  the  bad  currency  drove 
out  the  good,  while  trade  and  commerce  were  utterly 
prostrated.  In  vain  were  more  assignats  put  in  circu- 
lation. This  only  hastened  the  impending  ruin.  For 
want  of  the  necessary  revenue,  the  Assembly  then  had 
recourse  both  to  a  poll  tax  and  to  a  new  land  tax,  which 
only  caused  public  discontent,  without  substantially  re- 
lieving the  exchequer.  Then,  together  with  this,  came 
the  unpopularity  incurred  by  interfering  with  the  com- 
binations of  workmen,  and  by  the  injury  done  to  the 
public  workshops.  Chronic  discontent  everywhere  pre- 
vailed, and  while  starvation  and  misery  were  pinching 
the  lower  classes,  the  work  of  the  Assembly  could  not 
but  be  a  failure. 

Gradually  the  reins  of  power  passed  from  the  hands 
of  the  Assembly  into  those  of  the  extreme  radical  party. 
The  people  had  by  now  been  goaded  into  an  attitude 


316  Modern  Period 

that  was  prepared  to  acquiesce  in  any  extreme.  In 
1791,  the  National  Assembly  was  dissolved  and  its 
place  taken  by  the  Legislative  Assembly,  over  which 
the  king  had  very  little  power.  But  even  this  very 
limited  form  of  monarchy  was  finally  removed,  and  on 
September  21,  1792,  the  Republic  was  formally 
declared. 

The  reader  will  not  fail  to'  have  noticed,  all  along, 
how  potent  were  the  economic  factors  in  bringing  about 
this  Revolution.  While  the  poverty  of  the  nation  and 
the  burden  of  taxation  were  arousing  the  people  into 
agitation,  and  causing  the  rapid  dismissal  of  one  minis- 
ter after  another,  it  was  the  representatives  of  the  com- 
munes, the  Third  Estate,  who  brought  about  the  first 
few  steps  in  the  direction  of  the  overthrow  of  the  estab- 
lished order.  Those  very  communes,  that  were  such  an 
important  economic  factor  in  the  Middle  Ages,  were 
once  more  galvanized  into  life.  But  while  formerly 
they  were  the  buttresses  of  royal  power,  they  now  be- 
came the  instrument  of  the  people's  rights. 

From  now,  new  forces  appear  on  the  scene.  The 
passions  of  the  multitude,  the  ability  and  political  am- 
bitions of  such  party  leaders  as  Danton  and  Robes- 
pierre, and  finally  the  military  genius  of  Napoleon  ruled 
for  a  few  years  the  destinies  of  France.  Not  until  the 
empire  was  fairly  settled  did  the  economic  element  be- 
gin once  more  to  assert  its  influence  both  on  the  internal 
organization  of  France  and  on  the  warfare  between 
France  and  England. 


CHAPTER  IX 

A    GENERAL   SURVEY    OF   THE   CONNECTION    BE- 

TWEEN    THE     ECONOMIC    ELEMENT    AND 

RECENT   POLITICAL   EVENTS 

DURING  these  opening  years  of  the  twentieth  century, 
economic  activities  have  not  ceased  to  occupy  an  impor- 
tant position  in  the  politics  of  the  world.  The  enormous 
growth  of  industry  and  commerce,  the  ever-increasing 
power  of  money,  the  preponderance  of  political  influ- 
ence in  the  hands  of  the  leading  classes,  have  all  com- 
bined to  make  the  economic  factor  a  paramount  con- 
sideration. A  cursory  survey  of  some  of  these  economic 
activities,  however,  will  show  that  there  are  no  new  in- 
fluences at  work,  but  rather,  that  the  domain  of  the  old 
economic  activities  has  become  considerably  widened. 

The  question,  for  example,  of  government  interfer- 
ence with  industry  and  trade  looms  now  more  largely 
into  view  than  it  did  even  in  the  sixteenth  and  seven- 
teenth centuries.  Only  a  few  years  ago  a  great  political 
crisis  in  England  was  brought  about  by  the  question  of 
Free  Trade.  Mr.  Chamberlain  pointed  out  that  the 
adoption  of  Free  Trade,  in  its  entirety,  was  mainly  re- 
sponsible for  the  decline  in  British  industry  and  trade. 
He  proposed,  therefore,  to  introduce  a  system  of  prefer- 
ential tariffs  and  a  small  tax  on  foodstuffs.  At  once, 
there  took  place  a  division  in  the  cabinet  which  was  fol- 
lowed by  the  withdrawal  from  office  of  some  of  its  most 
important  members.  At  the  same  time,  an  important 
weapon  of  attack  was  given  to  the  succeeding  Liberal 
ministry  that  came  into  office  in  1905.  For,  even  the 
prime  minister,  then  Mr.  Balfour,  showed  himself 


318  Modern  Period 

slightly  in  favor  of  Protection,  though  not  to  the  same 
extent  as  Mr.  Chamberlain.  Evidently,  a  government 
that  begins  office  by  adopting  Free  Trade,  pure  and 
simple,  and  then  ends  by  modifying  some  of  its  more 
important  tenets,  places  itself  in  a  weak  position.  And 
in  point  of  fact,  this  prepared  the  way  for  the  strong 
Liberal  reaction  of  the  last  few  years. 

In  Germany,  also,  Free  Trade  has  become  an  impor- 
tant factor  in  politics.  During  the  last  imperial  elec- 
tions, the  cry  of  the  Social  Democrats  was,  "Down  with 
a  protectionist  policy  which  injures  the  vital  interests 
of  many  millions  of  people  1"  On  the  other  hand,  there 
is  a  very  strong  Agrarian  Party  that  wishes  for  an  abso- 
lute system  of  Protection.  So  strong  was  the  influence 
of  this  party,  that  it  probably  had  a  great  deal  to  do 
with  the  resignation  of  Count  Caprivi,  the  Chancellor, 
in  1 894.  That  such  was  the  case  might  be  gathered  from 
the  speech  of  the  German  Emperor,  who,  after  express- 
ing his  solicitude  for  the  important  agricultural  inter- 
ests of  East  Prussia,  declared  that  his  wishes  had  been 
thwarted. 

Nor  in  Germany  alone  does  the  question  of  Free 
Trade  reign  paramount,  but  throughout  all  Europe  as 
well.  Free  Trade  versus  Protection  is  a  dominant 
factor  in  international  politics. 

The  famous  Eden  and  Cobden  commercial  treaties 
proved  only  the  beginning  of  a  new  era  of  international 
intercourse.  The  bonds  of  the  Triple  Alliance  between 
Germany,  Austria,  and  Italy  have  been  still  further 
strengthened  by  reciprocal  commercial  treaties.  Fur- 
thermore, for  two  years  and  a  half,  there  have  been 
carried  on  negotiations  of  the  same  kind  between  the 
German  Empire  and  no  fewer  than  seven  nations, 
namely,  Belgium,  Italy,  Servia,  Russia,  Spain,  Austria- 


Economics  and  Recent  Political  Events        319 

Hungary,  and  Switzerland.  Then,  shortly  afterwards, 
a  special  tariff  was  arranged  between  Germany  and  Rus- 
sia. No  one  can  fail  to  see  how  these  different  treaties 
must  very  seriously  affect  the  relations  between  the  dif- 
ferent powers. 

In  the  United  States,  also,  the  retention  of  the  tariff 
duties  is  one  of  the  main  disintegrating  principles  of  the 
Republican  Party,  and  at  the  same  time  a  determining 
factor  in  foreign  politics.  In  a  preceding  chapter, 
it  has  been  shown  how  the  navigation  acts  are  injuri- 
ous to  the  interests  of  British  shipping  and  possibly  may 
cause  friction  between  the  two  countries.  But  the  tariff 
system  is  even  a  still  more  potent  factor  for  weal  or  woe. 
One  notable  instance  of  this  was  the  McKinley  Tariff, 
which,  by  its  extreme  protectiveness,  created  a  very 
strong  feeling  of  animosity  in  England. 

Another  aspect  of  government  interference  with 
trade  is  its  attitude  generally  toward  the  great  activities 
of  industry,  manufactures,  and  trade,  as  well  as  toward 
combinations  of  masters,  or  of  employed.  In  regard  to 
manufactures,  the  general  tendency  of  government  has 
been  to  interfere  in  behalf  of  the  employed.  Both  in 
England  and  in  America,  various  ordinances  have  been 
passed  regulating  child  labor,  the  hours  of  work,  and 
the  sanitary  conditions  surrounding  the  workman.  Also, 
regulations  have  been  made  regarding  the  compensa- 
tion of  workmen  in  case  of  injury  and  regarding  their 
rights  of  organization. 

While,  in  England,  combinations  of  workmen  have 
their  rights  distinctly  laid  down  by  law,  in  America  they 
are  allowed  greater  freedom  of  action.  On  the  other 
hand,  America  is  showing  a  greater  tendency  to  regulate 
such  associations  as  trusts  and  combines. 

Some  of  these,  by  their  selfish  trampling  upon  the  in- 


320  Modern  Period 

terests  of  minor  business  concerns,  and  by  their  corrupt 
influence  in  politics,  have  already  occasioned  an  agita- 
tion for  government  control  in  the  interests  of  the 
public. 

While,  however,  the  different  governments  are  com- 
paratively slow  in  interfering  with  these  combinations, 
their  control  over  banking  and  currency  systems  is  fully 
admitted  and  enforced.  They  regulate  the  supply  and 
quality  of  the  coinage,  and  they  authorize  the  issue  of 
paper  currency  in  the  interests  of  the  community.  Also, 
generally  speaking,  no  bank  can  be  established  without 
the  permission  and  a  certain  supervision  on  the  part  of 
the  State  authorities.  To  a  certain  extent,  the  govern- 
ment can  also  control  the  amount  of  bullion  that  must 
be  kept  in  the  country.  This  has  already  been  done  in 
England  by  the  provision  that  the  Bank  of  England 
must  keep  its  reserve  up  to  a  definite  figure.  And  in 
other  ways,  the  same  end  is  accomplished  by  the  en- 
deavor to  provide  that  the  exports  shall  not  be  too  much 
in  excess  of  the  imports. 

While  government  manipulation  of  the  finances  has 
important  results  on  the  internal  prosperity  of  combines, 
still  more  significant  does  it  become  in  regard  to  foreign 
loans.  Almost  every  government  has  by  now  con- 
tracted a  considerable  amount  of  debt,  not  only  with  its 
own  subjects,  but  also  with  the  subjects  of  other  nations. 
One  notable  illustration  of  this  we  have  in  the  enormous 
loans  made  by  French  bankers  to  the  Russian  Govern- 
ment. These  loans  were  made  in  reality  not  by  the 
bankers  themselves,  but  by  their  clients,  who  comprised  a 
large  portion  of  the  middle  class.  Naturally,  the  pros- 
perity of  Russia  became  partly  identified  with  that  of 
France,  which  would  have  bitter  cause  to  regret  any  un- 
toward incident  which  might  bring  Russia  into  a  state 


Economics  and  Recent  Political  Events        321 

of  bankruptcy.  Although  the  sympathy,  or  collision, 
of  financial  interests  affects  primarily  only  the  people, 
yet  in  these  days  of  representative  government  natural 
tendencies  must  be  taken  into  account. 

Indeed,  it  was  the  stern  necessity  of  the  consideration 
of  the  financial  welfare  of  the  people  at  large  that 
brought  about  the  war  waged  by  Japan  against  Russia. 
The  causes  of  the  war  were  the  question  of  Free  Trade 
in  Manchuria  and  the  occupation  of  Korea.  Russia's 
vexatious  and  humiliating  treatment  of  Japanese 
merchants  in  Manchuria  had  deeply  wounded  Japan, 
while  it  was  vitally  necessary  for  the  existence  and 
well-being  of  Japan  that  her  surplus  population  should 
be  allowed  to  occupy  Korea.  The  natural  products 
of  Japan  are  not  sufficient  for  her  own  maintenance, 
and  just  at  the  door  of  Japan  lay  the  country  of 
Korea,  apparently  destined  by  Providence  to  become 
her  colony,  abounding  both  in  minerals  and  in  fertile 
crops  of  wheat,  rice,  cotton,  and  fruits. 

If,  again,  we  consider  the  recent  revolution  in  Rus- 
sia, we  shall  find  that  its  causes  are  mainly  economic. 
The  fact  that  the  peasant  is  cut  off  from  the  land,  and 
that,  owing  to  heavy  taxation,  he  can  not  even  enjoy  the 
fruits  of  what  he  has,  is  largely  accountable  for  the  dis- 
content throughout  the  country.  At  the  same  time,  the 
constantly  recurring  strikes  throughout  the  Russian  Em- 
pire testify  to  the  profound  economic  discontent  of  the 
workingman,  which  gives  strength  and  force  to  the 
political  agitations.  Indeed,  it  was  mainly  the  recogni- 
tion of  those  very  serious  causes  of  weakness  that  im- 
pelled Russia  to  come  to  terms  with  Japan  as  readily  as 
she  did. 

Although  there  have  been  no  colonial  disputes  be- 
tween other  nations  of  such  gravity  as  to  cause  open 


322  Modern  Period 

warfare,  yet  considerable  tension  between  nations  has 
been  caused  by  conflicting  spheres  of  activity  in  foreign 
parts.  The  Monroe  Doctrine  in  the  United  States 
shows  her  fear  and  jealousy  of  any  outside  intervention 
in  South  America.  The  ill-will  aroused  in  France  some 
years  ago  by  the  English  occupation  of  Egypt,  the  jeal- 
ousy aroused  in  England  by  German  settlements  in 
China,  and  later  in  the  Persian  Gulf,  show  that  there 
still  remains  some  of  that  same  expansive  colonial  ac- 
tivity that  caused  the  colonial  side  of  the  Seven  Years' 
War. 

Then,  again,  the  constant  discovering  or  formation 
of  new  trade  routes  is  ever  changing  the  relative  com- 
mercial importance  of  countries  and  cities.  What  could 
be  more  important  than  the  formation  of  the  Panama 
Canal?  Not  only  will  this  important  undertaking  have 
the  effect  of  bringing  together  the  commercial  activities 
of  the  United  States  on  the  Eastern  and  Western  coasts, 
and  of  competing  more  successfully  with  the  ever-rising 
Japanese  trade  in  the  Pacific,  but  it  will  also  produce 
very  important  political  results.  It  will  tend  to  check 
the  tendency  of  Mongolian  civilization  to  travel  east- 
ward, and  will  enable  the  old  European  civilization  to 
pursue  its  onward  march  toward  the  West.  In  Europe, 
again,  the  completion  of  the  Simplon  Tunnel  will  have 
the  effect  of  strengthening  French  influence  in  Italy, 
much  in  the  same  way  as  the  St.  Gothard  was  promoted 
by  certain  German  States,  for  the  purpose  of  strength- 
ening German  influence  in  the  Southern  Peninsulas. 
The  importance  of  this  new  tunnel  on  the  future  of  Aus- 
tria will  also  soon  show  itself  in  tangible  results,  for  now 
she  will  be  brought  more  immediately  in  contact  with  the 
Far  East. 

It  is  no  exaggeration  to  say  that  the  relative  position 


Economics  and  Recent  Political  Events        323 

of  nations  is  now  determined  more  by  economic  than 
by  military  factors.  Money,  not  the  sword,  is  now  the 
preponderating  force.  Even  socially,  this  fact  is  ad- 
mitted. Great  merchants  can  penetrate  into  the 
charmed  circles  of  royalty,  and  are  admitted  on  terms  of 
intimacy  with  the  highest  in  the  land. 

We  may  now  conclude  by  saying  that  the  importance 
of  economics  as  a  factor  in  the  making  of  history  has 
been  fully  proved  and  illustrated.  From  the  days  of  the 
struggles  between  the  Plebeians  and  Patricians,  down  to 
the  late  agrarian  revolution  in  Russia,  the  power  of  the 
economic  factor  has  been  steadily  growing  until  at  the 
present  day  it  controls  not  only  the  relations  between  na- 
tion and  nation,  but  also  the  earthly  weal  or  woe  of  toil- 
ing humanity. 


Index 


325 


INDEX 


ACADIA,    298. 

Acragas,  23. 

Administrative  Council,  173. 

Aediles,  71. 

Aegean,  42,  51. 

Aerarium,  69,  70. 

Africa,  224.  248,  252,  283. 

Ager  publicus,  69,  74. 

Agrarian  Party,  318. 

Agriculture,  in  Greece,  20,  21,  35, 
36;  in  Rome,  cultivation  of 
wheat  and  vine,  53-55,  58-60, 
106,  114;  medieval,  150,  151, 
161,  162 ;  in  modern  times,  221- 
236 ;  in  America,  243,  244. 

Aids,  feudal,  124. 

Albermarle,  283. 

Albigenses,  War  against,  9. 

Alexander  the  Great,  48,  49. 

Alexander  III,  Pope,  134,  185. 

Alexandria,  49,  50,  227. 

Alfred  the  Great,  168. 

Allegheny,  286. 

Alsace,  284. 

Althorp,  Lord,  240. 

Alva,  Duke,  247. 

Amalfi,  155,  202. 

America,  206,  207,  222,  223,  229, 
243,  245,  248,  249,  252,  257,  259, 
268,  269,  270,  272,  276,  277,  279, 
283,  286,  292,  293,  299,  322. 

American  Civil  War,  13. 

American  Federation  of  Labor, 
272. 

Amiens,  130 ;  Treaty  of,  299. 

Amphictyonic  Councils,  9. 

Ancona,  155. 


Andreas  de  Pampinis,  255. 

Andros,  45. 

Antiochus  III,  King  of  Syria,  50. 

Antwerp,  247,  285. 

Anselm,  Archbishop,  183. 

Appanages,  174. 

Appian,  85,  94. 

Apprentices,  145-147. 

Architecture,  161. 

Arcot,  289. 

Aristotle,  on  economics,  20,  48, 

213,  214. 
Arkwright,  238. 
Arnold  of  Trier,  201. 
Asia,  283. 
Asia  Minor,  23. 
Assignats,  315. 
Assize  of  Clarendon,  137. 
Association  of  Charities,  275. 
Athens,  8,  24,  28,  35-48,  166. 
Attalus,  King  of  Pergamus,  50, 

69. 

Attica,  23. 

Auckland,  Lord,  299. 
Augustus,  56,  72. 
Aulnager,  154. 
Austerlitz,  290. 
Australia,  225,  229,  249. 
Austria,  285,  290,  297,  302,  318. 
Auvergne,  174. 
Aventine  Hill,  82. 
Azores,  223. 

BABER,  287. 
Babylon,  49. 
Balfour,  J.,  317. 
Banco  del  Giro,  158. 


326 


Index 


Banks,  in  Greece,  28,  29;  in 
Rome,  65,  66;  medieval,  156- 
159;  modern,  257-261 ;  Bank  of 
England.  258-260,  266;  Bank  of 
France,  259;  joint  stock,  259; 
private,  259;  United  States 
Bank,  260;  National,  260-261; 
State  banks,  260-261 ;  of  Genoa, 
265,  320. 

Barbarian  kingdoms,  169. 

Barcelona,  155. 

Bartolomeo  Diaz,  223. 

Basel,  201. 

Basilica,  Julia,  73. 

Bavaria,  175. 

Beauvais,  193. 

Belgium,  155,  302,  318. 

Bengal,  nabob  of,  289. 

Berlin  Decrees,  290. 

Berthold  of  Basel,  201. 

Bingen,  227. 

Birmingham,  242. 

Bithynia,  108. 

Black  Plague,  233. 

Black  Sea,  23. 

Blake,  Admiral,  282,  283. 

Bombay,  288. 

Boroughs,  American,  206. 

Boston,  295. 

Bounties,  219,  268,  269. 

Brabant,  152. 

Braddock,  General,  286. 

Brazil,  223,  225. 

Breda,  Peace  of,  283. 

Bremen.  201. 

Breton,  Cape  of,  224,  285. 

Breviarium,  70. 

Bridgewater  Canal,  242. 

Brill,  224. 

Bruce,  James,  225. 

Bruges,  156,  247. 

Bruno,   183. 

Burgundy,  115,  152. 

Byzantine,  270. 


CABRAL,  223. 

Caesar,  57,  72,  73,  99,  109.  113. 

Calais,  163. 

Calcutta,  253,  288. 

California,  244. 

Calixtus  II,  Pope,  185. 

Calicut,  253. 

Calonne,  311,  312. 

Campania.  55,  62. 

Canada,  286,  287. 

Canary  Islands,  288. 

Capital,  214. 

Capitainaries,  305. 

Caprivi,  Count  of,  318. 

Carlyle,  240. 

Carlsbad  Decrees,  302. 

Carnatic,  289. 

Carolinas,  244. 

Carthage,  8,  73,  87. 

Carthagena,  282. 

Cartier,  Jacques,  224. 

Cassius,  102. 

Catiline,  Conspiracy  of,  99,  100. 

Catharine  II  of  Russia,  301. 

Cato,  53. 

Censor,  71. 

Cesare  Beccaria,  221. 

Chancellor,  224. 

Chalcis,  39,  49. 

Charity     Organization     Society, 

275- 

Charlemagne,  160. 
Charles  I  of  England,  205,  262. 
Charles  II  of  England,  205,  219, 

246,  251,  258,  283. 
Charles  IV  of  Germany,  189. 
Charles  VI  of  Austria,  297. 
Charles  the  Bold,  160. 
Charter  Town,  193-195. 
Chartist  Riots,  302. 
Chicago,  272. 
China,  56,  225,  322. 
Church,  the,  116,  122,  126,  172. 
Cicero,  52,  55,  99,  103,  159,  246. 


Index 


3*7 


Cis-Alpina,  87. 

Cistercian  Monks,  151 ;  wool,  151. 

Claudius,  57. 

Cleruchy,  45,  46. 

Client,  Roman,  75. 

Clisthenes,  10;  reforms  of,  41. 

Clive,  Robert,  253,  288,  289. 

Cobden,  Richard,  300. 

Cobden  Treaty,  299,  318. 

Colchis,  23. 

Cologne,  151,  200. 

Colonies,  Roman,  107;  medieval, 
156. 

Colosseum,  58. 

Columbus,  223. 

Columella,  53. 

Combines,  319. 

Commenda,  214. 

Communes,  130,  190-208,  312,  316. 

Companies,  merchant,  250;  Rus- 
sian, 250,  251 ;  merchant  ad- 
venturers, 251 ;  Levant,  251 ; 
Royal  African,  251 ;  East  In- 
dian, 251,  252,  253,  288;  Vir- 
ginia, 252;  London,  252;  Ply- 
mouth or  West  of  England 
Company,  252 ;  French  East 
Indian  Company,  253. 

Congress,  207,  260. 

Conrad  of  Cologne,  201. 

Consols,  266. 

Constance,  Treaty  of,  134,  185. 

Constantine,  113. 

Constantinople,  115,  156,  211. 

Consuls,  commercial,  in  Greece,  29. 

Convertible  husbandry,  237. 

Cook,  Captain,  225. 

Coote,  Colonel,  289. 

Corinth,  28,  39,  73. 

Corsica,  87. 

Cortes,  135. 

Corvees,  308,  310,  311,  313- 

Crafts,  medieval,  141-149. 

Crassus,  101. 


Crompton,  238. 

Cromwell,    258,    268,    281,    282, 

283. 

Crusades,  9,  156,  160. 
Currency,  226,  254-257,  320. 

DAMNUM  EMERGENS,  215,  216. 

Danes,  120,  126,  168. 

Dante,  188,  189. 

Darlington,  242. 

Debt,  in  Greece,  29.  31,  36,  38 ;  in 

Rome,    u,    77,    78,    105,    106; 

medieval,  144. 
Delhi,  253. 
Delos,   Confederacy   of,   42,  45; 

Island  of,  51,  65. 
Demerara,  299. 
Demetrius  of  Macedonia,  50. 
Democrats,  271. 
Denmark,  132. 
Dicastors,  payment  of,  44. 
Diocletian,  113,  115. 
Dionysius,  81. 
Diplomacy,  211. 
Dominicans,  217. 
Dowlah  Suraja,  289. 
Drake,  225. 
Dungeness,  283. 
Dunkirk,  282. 
Dupleix,  253,  288,  289. 
Durham,  241. 

EAST  INDIA  BILL,  254. 
Economic  element,  influence  on 

empire  and  Papacy,  182-190. 
Eden,  Treaty  of,  299,  318. 
Edward  I  of  England,  151,  160. 
Edward    III    of    England,    146, 

218. 

Edward  VI  of  England,  251. 
Egypt,  322. 
Elis,  23. 
Elizabeth,  Queen,  205,  219,  225, 

251,  256,  267,  274. 


328 


Index 


Enclosures,  233,  236. 

England,  8,  12,  121,  122,  132,  136, 
139,  147,  152,  153,  154,  155,  160, 
162,  168,  169,  174,  179,  195,  198, 
204-206,  218,  219,  221,  222,  223, 
224,  229,  243,  246,  247,  248,  249, 
255,  259,  262,  264,  265,  268,  269, 
270,  281,  283,  284,  285,  286,  290, 

291,  292,  293,  297,  298,  299,  302, 

3",  317. 
Entail,  123. 
Epodecteres,  33. 
Essequibo,  299. 
Essex,  Lord,  267. 
Etruria,  62. 
Eubcea,  45. 
Evictions,  234,  235. 
Exchange,  30. 

FACTORIES,  240,  241. 

Fairs,  138,  139,  140. 

Farmers-General,  309. 

Fealty,  119. 

Feudal  System,  117,  118-127,  166, 

168-181,  231. 
Flanders,  n,  132,  151,  152,  153, 

164,  296. 

Flemish  Weavers,  138. 
Florence,  189,  196,  203. 
Forcalquier,  Count  of,  176. 
Fort  William,  289. 
France,   116,   121,   122,   124,   129, 

147,  149,  155,  160,  164,  166,  167, 

175,  179,  195,  196,  197,  198,  199, 

219,  220,  221,  223,  229,  243,  247, 
248,  255,  264,  265,  268,  269,  270, 
282,  283,  284,  285,  286,  290,  291, 

292,  302,  311,  320. 

Franchise,  206. 
Franciscans,  217. 
Francis  I  of  France,  224. 
Franconia,  175. 
Frankfort,  200. 
Franks,  115. 


Frederick   Barbarossa,    131,    134, 

176,  185,  202. 
Frederick  II,   132,   176,  177,  186, 

187,  201,  265. 

Frederick  the  Great,  301. 
Freeholders,  233. 
Free  Trade,  14,  221,  222,  317,  318, 

321. 

French  Revolution,  265,  301. 
Frobisher,  225. 
Fucine,  57. 

GABELLE,  308,  310,  311. 

Gare,  John,  146. 

Gascony,  II,  12,  246. 

Gaul,  101,  105. 

Genoa,  155,  156,  202. 

Georgia,  224. 

Gerhard  of  Mainz,  201. 

German  Imperial  Confederation, 
201. 

Germany,  116,  121,  125,  131,  132, 
133,  139,  147,  148,  149,  I5L  156, 
170,  175,  176,  186,  195,  196,  199, 

214,  221,  222,  229,  234,  248,  270, 

302,  318,  319. 

Ghibelline,  186,  188,  189. 
Gibraltar,  298. 
Gilbert,  act  of,  278. 
Gloucester,  242. 
Goa,  288. 
Golden  Bull,  189. 
Golden  Fleece,  The,  152. 
Goldsmiths,  London,  257,  258. 
Good   Hope,   Cape  of,   223,  227, 

299. 

Goschen,  266. 

Governor,  Roman,  104,  108. 
Gracchi,  89,  97,  102,  107;  Caius, 

89;  reforms  of,  92-95;  fate  of, 

95 ;   Tiberius,  reforms  of,  90 ; 

fate  of,  91. 

Grand  Alliance,  284,  285,  298. 
Grand  Trunk  Canal,  242. 


Index 


329 


Greece,  1-51,  87,  137,  166,  288. 
Gregory  VII,  Pope,  182,  183,  184, 

185. 

Grocers'  Hall,  258. 
Grossteste,    Bishop    of    Lincoln, 

150. 

Guelf,  186,  188,  189. 
Guiana,  225. 
Guicciardini,  247. 
Guienne,  n,  12,  246. 
Guildhall,  149,  198. 
Guilds,  in  Greece,  25 ;  in  Rome, 

57;  medieval,  117,  141-149,  190, 

196. 
Gulf  of  St.  Lawrence,  224. 

HADRIAN,  72. 

Hartlepool,  242. 

Hamburg,  201,  227. 

Hellespont,  48. 

Henry  I  of  England,  Charter  of, 

1 86,  194. 

Henry  II  of  England,  125,  161. 
Henry  VII  of  England,  161,  296. 
Henry  VIII  of  England,  205,  274- 

280. 

Henry  the  Fowler,  128,  171,  198. 
Henry  IV  of  Germany,  133,  184, 

185. 
Henry  V  of  Germany,   137,  184, 

185. 

Henry  VI  of  Germany,  176. 
Henry  VII  of  Germany,  186. 
Henry  IV  of  France,  262. 
Henry  VII  of  Luxemburg,  189. 
Henry  of  Strassburg,  201. 
Henry,  Prince  of  Portugal,  223. 
Henry,  Patrick,  294. 
Hernici,  82. 
Hildebrand,  126. 
Hobbes,  301. 
Hohenlinden,  290. 
Hohenstauffen,    House   of,    131, 

187. 


Holland,  224,  229,  247,  268,  282, 

283,  284,  297. 

Holy  Roman  Empire,  182. 
Holy  Alliance,  302. 
Hoogly,  288. 
Hortensius,  81. 
Hotel  de  Ville,  192. 
Hospitals,  medieval,  144. 
Hudson  Bay,  298. 
Hugh  Capet,  171. 
Hundred  Years'  War,  II,  12. 
Hungary,  168,  319. 

ILIAD,  25. 

Immunity,  119. 

Imperial  Diet,  131,  167,  200. 

India,  56,  224,  227,  249,  253,  286, 

287,  288,  289. 
Indian  Mutiny,  254. 
Industry,    226;    modern    woolen, 

238;  modern  cotton,  238. 
Intercursus    magnus,     153,    296, 

297. 
Interest,  in   Greece,   129-148;   in 

Rome,  54;  lawfulness  of,  214- 

217. 
Investiture,   contest  of,   183-185, 

187. 

Ireland,   150. 
Iron,  smelting  of,  241. 
Italian  allies,  94,  95. 
Italy,  125,  133,  US,  149,  155,  164, 

166,  178,  179,  186,  187,  196,  202, 

203,  221,  246,  248,  270,  290,  318, 

322. 

JACKSON,  ANDREW,  President  of 

United  States,  260. 
Jacob  of  Metz,  201. 
Jaffa,  156. 
Jamaica,  282. 
James    I    of   England,   205,   258, 

267. 
James  II  of  England,  205. 


330 


Index 


Japan,  321. 

Jena,  290. 

Jerusalem,  156. 

Jewish  lending  societies,  275. 

Jews,  159,  160,  161. 

Joseph  II  of  Austria,  301. 

Journeymen,  148. 

KAY,  238. 

Kempe,  John,  152. 

King,  John,  153. 

Knights,  Roman,  64,  65,  89,  90, 
91,  92,  93,  94,  97,  101 ;  me- 
dieval, 126. 

Knights  of  Labor,  272. 

Korea,  321. 

LABOR,    division    of,    in    Greece, 

26;   slave,   in  Greece,  27,  46; 

kinds   of,   54;    in    Rome,    57; 

slave,  in  Rome,  65,  90,  106. 
Lancashire,  239,  241,  292. 
Lanfranc,  Archbishop,   183. 
Laon,  130. 
Land,  division  of,  in  Rome,  62, 

63 ;  in  provinces,  63,  64. 
Latium,  62. 
Laurium,  23. 
Law,  Roman,   115,   123;    Icilian, 

82;    Canuleian,    84;    Licinian, 

84,  85,  90. 

Legislative  Assembly,  316. 
Legnano,  Battle  of,  134. 
League  of   the  Rhine,   132,  200, 

201. 

Leipzig,  138. 
Lemnos,  45. 
Liguria,  87. 
Liverpool,  242. 
Livingstone,  David,  225. 
Livius  Drusus,  97,  102. 
Livy,  69,  83. 
Loan,  State,  265,  266. 
Lodi,  134. 


Lombard  League,  134. 
Lombardy,  132,  134,  177,  178,  187. 
London,   132,  136,   149,  163,  194, 

242. 

Louis  VI,  129,  130. 
Louis  VII,  130. 
Louis  VIII,  174. 
Louis  IX,  174. 
Louis  le  Debonnaire,  160. 
Louis  XI,  121. 
Louis  XII,  224. 
Louis  XIII,  197. 
Louis  XIV,    13,    212,    219,    283, 

284,  298,  304. 
Louis  XV,  221. 
Louis  XVI,  310. 
Louisiana,  286. 
Lowndes,  255. 
Low  countries,  296. 
Lucca,  270. 

Lucrum  cessans,  215,  216. 
Lubeck,  132,  200,  201. 
Lyons,  155. 

MACEDONIA,  48,  87. 

Madeiras,  223. 

Madras,  285. 

Magdalen  College,  161. 

Magna  Charta,  154. 

Mainz,  200,  227. 

Malabar,  223,  288. 

Manchester,  242. 

Manchester  Ship  Canal,  242. 

Manchuria,  321. 

Manor,  231,  232. 

Manufactures,  in  Greece,  25-27 ; 
in  Rome,  56,  114;  medieval, 
153,  154,  156,  162,  237,  241,  319. 

Marengo,  290. 

Marling,  151. 

Maria  Theresa,  285. 

Mardyke,  282. 

Marketplace,  in  Greece,  30. 

Markets,  widening  of,  226. 


Index 


331 


Marseilles,  155. 
Marsic  War,  97,  98. 
Mary  Stuart,  281. 
Massachusetts,  294. 
Matilda,  125. 
Mauritius,  299. 
Maximilian,  Emperor,  246. 
McKinley  Tariff,  319. 
Mediterranean,  223,  228,  247. 
Mercantilists,  217,  218,  220,  222, 

267,  281. 
Messapia,  55. 
Messenia,  22,  23. 
Methuen  Treaty,  297. 
Methuen,  Paul,  298. 
Metternich,  302. 
Mexico,  225. 
Middleman,  237. 
Middlesborough,  242. 
Milan,  133,  134,  203. 
Milan  Decrees,  291. 
Miletus,  28. 
Mills,  239. 
Minnesota,  276. 
Minorca,  298. 
Mogul  Dynasty,  287. 
Mohammedan  invasions,  7- 
Mommsen,  202. 
Monasteries,  161,  162. 
Money,  in  Greece,  28,  37,  38,  39, 

42 ;  in  Rome,  64. 
Monopolies,  219,  221,  267,  268. 
Mons  Sacer,  80. 
Monroe  Doctrine,  322. 
Montague,  265. 
Mantes  pietatis,  217. 
Montreal,  224,  287. 
Musciati  Guidi,  256. 

NAPLES,  177,  186,  196. 
Napoleon  I,  290,  291,  292,  299. 
Napoleon  III,  300. 
National  Assembly,  313,  314,  315. 
316. 


National  Guard,  313,  314. 
Navigation   Acts,  268,   269,  282, 

283. 

Naxos,  45. 
Nayon,  130,  199. 
Necker,  311,  312,  314. 
Nero,  78. 
Netherlands,  War  in,  9,  156,  285, 

297. 

Nevada,  244. 
Newfoundland,  224,  298. 
New  Testament,  103. 
New  York,  224. 
New  Zealand,  225,  229. 
Niagara,  286,  287. 
Nile,  227. 

Nobility,  medieval,  125. 
Norfolk,  153. 
Normans,  177. 
North,  Lord,  295. 
Norway,  132. 
Novgorod,  132,  138. 

OCTAVIUS,  91. 

Odyssey,  25. 

Olive,  in  Greece,  24 ;  in  Rome,  61. 

Orders  in  Council,  291. 

Oresme,  Nicholas,  255. 

Orinoco,  225. 

Orleans,  197,  198. 

Ostend,  Company  of,  285,  297. 

Ostia,  58,  70. 

Ostrogoths,   115,  167. 

Oxford  Parliament,  152. 

PALATINATE,  invasion  of,  284. 

Panama  Canal,  322. 

Pangean  Mountains,  23. 

Papacy,  116,  126,  127. 

Paris,   148,  197,  198;  Treaty  of, 

1814,  290,  299. 
Parliament,    English,    136,    149, 

204-206;  French,  173,  302;  of 

Paris,  310. 


332 


Index 


Partnership,  214. 
Paschal  II,  Pope,  184,  185. 
Paterson,  William,  258. 
Patrician,  64,    76,   77,   79,  80-84, 

87,  88,  go,  96,  loo,  323. 
Pavia,  133. 

Peace,  Francis,  271. 

Pedro  III,  156. 

Peel,  Robert,  240. 

Pepin,  168. 

Pericles,  34,  41-47. 

Periculum  sortis,  215,  216. 

Perseus  of  Macedonia,  21. 

Persia,  49. 

Persian  Gulf,  322. 

Petigliano,  225. 

Philip  Augustus,  130,  197. 

Philip  II,  224;  of  Spain,  265. 

Philip  the  Good,  156. 

Philip  the  Fair,  174. 

Philip,     Archbishop,     Duke     of 

Netherlands,  296. 
Philip  and  Mary,  278. 
Phoenicia,  8. 
Phoenician  captains,  28. 
Phora,  42. 
Physiocrats,   217,  222,   230,   267, 

310. 

Pisa,  133,  156,  202. 
Pisistratus,  32. 
Pitt,  the  Elder,  286 ;  the  Younger, 

221,  264,  266. 
Pittsburg,  286. 
Pius  VII,  Pope,  291. 
Plassey,  289. 
Plato,  on  economics,  20. 
Plebeians,  76,  77,  79,  80,  82-84,  87, 

88,  96,  100,  323. 
Pliny,  65,  108. 
Plutarch,  44. 
Poitiers,  197. 
Poletai,  33. 
Polk,  194. 
Pompeius  Strabo,  98. 


Pompey,  Gn.,  10. 

Pondicherry,  288. 

Pontine  Marshes,  73. 

Poor,  support  of,  in  Greece,  32; 

misery    of,    37;    care    of,    in 

Rome,  72,  107,  108;  medieval, 

162;  modern,  273-280. 
Poor  Laws  of  Henry  VIII  and 

Elizabeth,  235. 
Popilius,  92. 
Portland,  283. 
Portugal,  284,  298. 
Primogeniture,  123. 
Protection,  14,  221,  222,  270,  271, 

3I& 

Provence,  174. 

Prussia,  8,  285,  290,  291,  302. 
Publius  Volero,  80. 

QUEBEC,  287. 
Quesney,  220. 

RALEIGH,  225. 

Rathaus  House,  192. 

Ravenna,  155. 

Reform,  Bill  of,  1832,  206. 

Religion,  influence  of,  8;  influ- 
ence on  ancient  Rome,  9; 
Roman,  113,  115. 

Renaissance,  226. 

Republicans,  271. 

Rhodes,  Island  of,  50,  51. 

Richard  II  of  England,  218,  268. 

Richard  III  of  England,  204. 

Richard  of  Worms,  201. 

Richelieu,  288,  304. 

Roebuck,  Dr.,  241. 

Romans,  228. 

Rome,  52  et  seq.,  166,  189,  196, 
246. 

Rotation  of  crops,  235. 

Rotten  boroughs,  206. 

Rouen,  198. 

Rousseau,  220. 


Index 


333 


Rubicon,  102,  103,  104. 
Rudolf  of  Hapsburg,   131. 
Rupert,  Prince,  283. 
Russia,    138,  225,   246,  291,  302, 

3i8,  319,  320,  321,  323. 
Ruyter,  283. 

SABINE,  55. 

Salerno,  202. 

Saracens,  168,  177. 

Sardinia,  87. 

Scaccarium  Judaismi,  161. 

Scandinavia,   155. 

Scheldt  River,  247,  285,  297. 

Schoolmen,  213. 

Seals,  192. 

Selim,  Sultan,  227. 

Senate,  Roman,  70,  71,  88,  98-101. 

Seneca,  52. 

Serfs,  125. 

Servius  Tullius,  64,  76. 

Severn  River,  242. 

Seven  Years'  War,  13,  285,  290. 

Sforzas,  203. 

Shaftesbury,  Earl  of,  240. 

Sicily,  55,  62,  87,  155,   177,  186, 

187. 

Sieyes,  314. 
Silesia,  285. 

Simon  de  Montfort,  174,  181,  204. 
Simplon  Tunnel,  322. 
Siphnas,  23. 
Smith,  Adam,  221,  264. 
Smith,  Sydney,  263,  264. 
Solon,  10;  reforms  of,  38-41,  166. 
Spain,  135,  155,  222,  248,  265,  281, 

282,  284,  318. 
Spanish    Netherlands,    War    of, 

281. 

Spanish  Succession,  War  of,  298. 
Sparta,  47. 
Speyer,  200,  227. 
Spurius  Cassius,  79,  82. 
Spurius  Melius,  83. 


States-General,  318. 

Stamp  Act,  294,  295. 

Stamp  Act,  Congress,  294. 

Staple  towns,  163. 

Steam  engine,  239. 

Stephen,  125,  179,  180. 

St.  Antonius  of  Florence,  216. 

St.  Bernardino   of    Sienna,   214, 

216. 

St.  George,  Fort,  288. 
St.  Giles,  139. 
St.  Gothard  Tunnel,  322. 
St.  Louis,  King  of  France,  265. 
St.  Thomas    Aquinas,    48,    213, 

214. 
St.  Vincent    de    Paul    societies, 

275- 

Stourbridge,  139. 
Strabo,  65. 
Strassburg,  200. 
Suabia,  175. 
Suetonius,  100. 
Suffolk,  153. 
Suger,  Abbot,  183. 
Sulla,  98. 

Sully,  Duke  of,  248. 
Sweden,  132. 

Switzerland,  150,  170,  319. 
Syracuse,  23. 

TAILLE,  219,  306,  307. 

Talleyrand,  314. 

Tarentum,  23. 

Tariff,  271. 

Taxes,  in  Greece,  37,  46;  in 
Rome,  64,  67-70,  103 ;  modern, 
262,  306-310,  314,  315. 

Templars,  159. 

Teneriffe,  282. 

Tennessee,  286. 

Teutonic  nations,  views  on  priv- 
ileged property,  21. 

Thebes,  48. 

Theodoric,  167,  168. 


334 


Index 


Third  Estate,  174,  199,  204,  302, 
312,  313,  3i6. 

Thirty  Years'  War,  9,  281,  297. 

Ticonderoga,  287. 

Tilsit,  291. 

Timon  the  Tartar,  287. 

Tobago,  299. 

Torquatus  Manlius,  83. 

Toulouse,  174. 

Towns,  117;  medieval,  128-140, 
190-208;  German,  186;  market, 
199;  America,  207;  modern, 

239- 

Townshend,  Lord,  235. 
Trade-Unions,  14,  271-273. 
Trade,  lawfulness  of,  213. 
Trafalgar,  290. 
Trajan,  Emperor,  108. 
Tribunes,  80,  81,  84,  98. 
Trichinapoli,  288. 
Triple  Alliance,  318. 
Tripoli,  156. 
Tromp,  Admiral,  283. 
Truck,  154. 
Trusts,  14,  319. 
Tudor  kings,  205. 
Tullius  Hostilius,  76. 
Turgot,  264-265,  306,  310. 
Turks,  223,  227. 

ULM,  290. 

Utrecht,  Treaty  of,  282,  285,  298. 

VALERIAN  Horatian  Laws,  84. 

Varro,  53. 

Vasco  da  Gama,  223. 

Venables  Penn,  282. 

Venice,  8,  12,  131,  155,  156,  157, 

196,  202,  203,  211,  218,  223,  227, 

228,  229,  265,  267. 


Versailles,  312. 

Vienna,  Treaty  of,  1731,  297. 

Villeins,  231,  234. 

Vine,  in  Greece,  24. 

Virgil,  52. 

Virginia,  225. 

Visigoths,  115. 

Vives,  274. 

WABASH,  286. 

Walpole,  282. 

Wandewash,  289. 

War  of  American  Independence, 

13,  263,  293-295,  311. 
Warbeck,  Perkin,  296. 
Wardens,  145. 
Warton,  139. 

Waste  lands,  reclamation  of,  236. 
Wat  Tyler,  insurrection  of,  138. 
Watt,  239,  242. 

"Wealth  of  Nations,"  221,  264. 
Weavers,  149. 
Wends,  168. 

Westphalia,  Treaty  of,  247,  297. 
White  Sea,  224. 
William,,   the    Conqueror,     121, 

179. 
William  III  of  England,  205,  206, 

258,  265. 

William  of  Orange,  283. 
William  II  of  England,  179. 
Wolfe,  General,  286. 
Woollen  industry,   151-153. 
Worms,  131,  200,  227;  Concordat 

of,  185. 

XENOPHON,  treatise  on  wealth,  20. 

YORK,  152. 
Ypres,  274. 


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8 


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